Posts filed under 'Estate Planning'
Our Comment by J. David Lewis – This article was published in 2011, just days after we completed summarizing client estate plans, with the information we maintain for them. I postponed sharing it until we are again in the season when we remind clients to ask themselves if there estate plans are still the way they want them. Everyone should think about things people around them will need if they are not able to take care of their own affairs.
By Saabira Chaudhuri
“Jean Parr is grateful that her mother obsessed about the subject. “I really didnt want to think about it,” says Ms. Parr, 54 years old, a manager at the American Chemical Society in Washington. But when her mom died in 2005, she knew exactly where to look for the will, the key to a safe-deposit box and documents indicating her mother had paid and arranged for her own funeral.
The financial consequences of failing to keep your documents in order can be significant. According to the National Association of Unclaimed Property Administrators, state treasurers currently hold $32.9 billion in unclaimed bank accounts and other assets.”
Read “The 25 Documents You Need Before You Die” via Designing Your Death Dossier – WSJ.com.
In 2011, most “Estate Planning Quarterly Reports” included our thoughts on communications which is an element in the WSJ.com article we encourage now. Many families have an ability to be more pragmatic than others about disposition of their “stuff.” We think it is important for whole families to have a well understood philosophy surrounding any asset that has the potential for becoming emotionally charged when it is part of an estate. Survivors often seem to honestly believe their interpretation of family history is more valid than other family member’s interpretations. Sometimes those contradictory beliefs are strong. We think families will benefit if the living owner can speak clearly about their wishes and consider reasonably accurate assessments for the effects of these assets on their family’s wellbeing. It is also important to listen carefully to potential heirs when they discuss their feelings about your family’s assets. We think open communication is more important, with regard to these matters, than “iron-clad” legal documents. Surprises and conflicting interpretations can cause family distress.
Contact J. David Lewis directly with Dlewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family.
March 15th, 2012
Our Comment by J. David Lewis - This article begins a very good discussion of things to consider with insurance agents, accountants and investment advisors. It is definitely worth reading, including the idea that you should consider a few candidates. The next in the series will go further .
How to pick a team of financial pros
Published: Thursday, August 26, 2010, 1:10 AM
Karin Price Mueller/The Star-Ledger
“Even if you’re a do-it-yourselfer, there are times you should call in a pro. These pros have experience in areas you may dabble in. And when it comes to your financial life, dabbling doesn’t cut it. That’s where the pros come in. We all need an objective observer who can see the overall picture and come up with a game plan. Forgive the sports analogies, but think of it as a football team. You may be a killer quarterback, but without a reliable receiver and solid linemen, you’ll be mincemeat on the field. This is the first installment of a two-part guide to choosing your team of pros.”
The full article is available via How to pick a team of financial pros | NJ.com.
J. David Lewis founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. Contact him using david.lewis@resourceadv.com.
August 26th, 2010
Our Comment by J. David Lewis – This revelation really frustrates me. Our legislators have had nearly ten years to develop a reasonable estate tax law. Numerous attempts have been negotiated and debated. Every year, I have expected the issues to be resolved. One night, I went to bed thinking a bill would be passed in my sleep; to learn when I woke that the expected agreement was not reached. No wonder so many are so disillusioned with these guys.
By WSJ Staff
“Because Steinbrenner died in a year when there is no federal estate tax, he potentially saved his heirs a 55% estate tax on his assets — or a tax bill of about $600 million. The 55% tax takes effect on January 1, 2011. If Steinbrenner had died in 2009 when the estate tax rate was 45%, his estate tax bill might have been nearer $500 million. Because the wealthy often do elaborate planning, putting assets into trusts taxed separately from the estate or into foundations that are tax-exempt, it is unclear how large his estate will be. Estate taxes may also be postponed on assets left to a spouse in years when there is an estate tax.”
Read this version of the story via Yankees Owners George Steinbrenner Saved $600 Million in Estate Taxes by Dying in 2010 – Metropolis – WSJ.
J. David Lewis founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. Contact him using david.lewis@resourceadv.com.
July 15th, 2010
Our Comment by J. David Lewis – I was somewhat surprised to be asked for my contribution to this news segment. In the initial phone interview, Ms McNeal had several good questions that helped me understand that I may be able to draw on my experiences to help people. I wanted to say; “You can avoid having a shocking emotional loss absorb resources your surviving family may desperately need.” WATE did an excellent job, crafting perspectives of several people, into these two presentations, totaling about seven minutes.
By JILL MCNEAL, 6 News Anchor/Reporter
KNOXVILLE WATE – Its something no one likes to think about, let alone talk about. Death, either your own or that of someone you love.
Adding to the trauma is the hefty price tag that comes with it.
The first segment is via The hefty price of dying.
Not Breaking The Bank while Still Honoring Your Loved One (2nd Segment)
And there’s nothing wrong with saving during what can be a very expensive time, says financial planner J. David Lewis, of Resource Advisory Services.
“It may cost more than the family car is worth. And all of a sudden in a three-day period, with all of the emotion of losing someone very close to you, you’ve got to decide on how to carry out the funeral. That is excruciating,” Lewis said.
So he has this word of caution.
“Spending more money on the funeral is not going to bring that person back. It’s not going to make their memory any better. It’s not going to help them in any way,” Lewis said. “If you find yourself saying, ‘I’m buying that casket because he was such a wonderful person,’ it’s not the reason to buy that casket.”
To help make those decisions, Lewis recommends bringing along a trusted friend who’s not as emotionally involved. “Maybe a psychologist or an attorney or someone who’s well grounded.”
To make it easier on loved ones, he encourages everyone to share their final wishes with their families. “It’s just not a pleasant subject. It takes courage,” Lewis acknowledged.
The second segment is via Not breaking the bank while still honoring your loved one.
Also see Pros and cons of funeral trusts
J. David Lewis founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. Contact him using david.lewis@resourceadv.com.
July 8th, 2010
Our Comment: Many of us have needed to help our parents handle anything from the normal financial task of paying bills to making major financial decisions. We never seem to know the best time to offer help or ways to help parents understand they need our help. This short article has tips that are good to keep in mind, based on our experiences. – J. David Lewis
By Colleen Reinhart, eHow Contributing Writer
Realizing that a parent needs help coping with finances is hard, but your foresight, help and vigilance can keep your aging mother or father safe, secure and provided for throughout the golden years. Tread carefully when talking about money, since asking for financial help is difficult for World War II-generation seniors used to looking after themselves. Keep your eyes open for red flags that signal financial trouble, prevent problems by planning ahead and act fast if you notice any serious financial issues.
Read the rest via How to Care for an Elderly Parents Finances | eHow.com.
J. David Lewis founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. Contact him using david.lewis@resourceadv.com.
June 30th, 2010
J. David Lewis Quoted on Bankrate.com
Funeral trusts allow people to pay funeral expenses in advance, and that can spare survivors a lot of difficult decisions, say advocates. Some nursing homes even require a funeral trust as a condition of admission. But if the trustees aren’t reputable or the information isn’t current, financial planners warn that such trusts can bring bereaved families more grief.
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Potential for abuse – Unlike Grillos grandmother, Harrisons mother made her arrangements through an insurance company rather than a funeral home, a precaution J. David Lewis, president of Resource Advisory Services in Knoxville, Tenn., endorses, even though the fee structure will likely be higher.
Early in his career, Lewis says, he managed an investment trust for a funeral home, an experience that left him wary of the potential for abuse. While the pitch is that you save money by locking in today’s prices, he says, “I suspect some funeral homes are making an extraordinary profit on them by billing the trust for high-priced funerals.”
“Here in Tennessee, a couple of large funeral homes got into very serious trouble because they were taking people’s money and putting it into the business instead of a trust,” Lewis says. “When they went bankrupt, there was no money there for a whole lot of people who had paid for pre-need.”
Lewis advises that anyone contemplating a trust program offered through a funeral home make sure there’s an independent trustee who will audit the funeral bill for reasonableness and pay any excess to the family.
Read this very good article via Pros and cons of funeral trusts.
April 9th, 2010
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