Many Baby Boomers find themselves between a rock and a hard place when making their estate plans. The parents of Baby Boomers are often living longer than they planned to because of the advancement of medicine. That means that they have less to leave Baby Boomers in their estates. It also means that Baby Boomers might have to spend some of their own assets to take care of their elderly parents and that Boomers might have less to leave to their own children.

When you are uncertain about how much money you will have, how much you will need and how much you will receive from your parents, it is often difficult to come up with fixed estate plans. However, you can still make plans. Your plans will just need to be flexible. Instead of using a Will to state that your children should receive a fixed amount of assets, use a Revocable Living Trust. That way, you can use the assets now for your parents care and for yourself. Whatever is left over can go to your children.

Advances in medical technology have numerous benefits, but they do make estate planning more difficult. Talk to an attorney about how you can make plans that you can adapt to your changing needs.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Some people think that all they need is one or two documents in their estate plan, maybe a Will and a life insurance policy. However, most people are better served by taking a more holistic approach. That is an approach that looks at the entire portfolio of the person’s assets and devises an estate plan that protects and preserves those assets for their intended heirs.

The biggest problem with the simple approach is that may actually cost the intended heirs more money than the deceased thought it would. For large estates, the estate tax should always be a concern. However, even small estates will want to keep other taxes in mind. Other issues can arise for other people. If one of the people you want to leave assets to has a lot of debt, it’s possible that the inheritance will wind up in the hands of creditors. Everyone should worry about possible Probate costs if all they have in their estate plan is a Will.

An experienced estate planning attorney can look at your assets and devise a plan that takes everything into consideration. Using a  holistic approach, the attorney will craft your plan so the assets that you intend to leave to your  loved ones go to them after you pass away.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

There are two things about your death that you cannot know ahead of time: when it will happen and what the estate tax will be at the time. People often make the mistake of planning their estate around the current estate tax. If you pay attention to what happens in Washington, then you should know that this is a bad idea. Politician’s always tinker with tax rates. Instead, your estate plan should be built on a solid foundation no matter what the estate tax rate happens to be when your time comes.

It is understandable that people with large estates would prefer that their assets go to their heirs rather than the government by way of the estate tax. All estate taxes, however, are not avoidable. You might be able to find a way to minimize them with the help of an estate planning attorney. If you leave the division of your large estate up to the provisions in a Will, your estate will be subject to the highest estate tax rates. An estate planning attorney can help you set up a Trust in a way that minimizes the tax. One way, is to make a trust for each of your children that gives them an income during their lifetimes and then goes to their heirs. This is known as a generational skipping Trust.

An estate planning attorney might have even better ways to help you minimize the tax on your estate. Speak to one today about how to make a good estate plan regardless of the estate tax rate.

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Thanks again.

Dennis D. Duffy

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Planning for your estate after you pass away should often involve more than merely determining how financial assets will be distributed. You might just have some special heirlooms that you want to make sure go to particular people. If so, you need to plan for who gets them. Some people, however, will want to plan for how their image might be used in the future.

Recently, rappers Dr. Dre and Snoop Dogg used a holographic image to perform with deceased rapper Tupac Shakur on stage. As it turns out, they received permission to do this from Shakur’s estate. The estates for other celebrities are considering allowing similar uses for their images. Most of us aren’t Hollywood celebrities, but even local celebrities, such as a newscaster, should consider how and when they want their image to be used after they pass away. If nothing else, they should decide who will be in charge of deciding whether to allow the use. Shakur probably did not anticipate performing holographically after he had passed away. Similarly, other people cannot anticipate what future technology might bring. What’s in Hollywood today, might be cheap enough in the future to use locally and in circumstances no one anticipates now.

If you have an image you want to protect, talk to an estate planning attorney about how to protect it after you pass away.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Revocable living trust provisions can always be changed so long as you have the legal mental capacity to do so.  You can change, amend, add to, or revoke your living trust so long as you are alive and well.  The same goes for your will, financial power of attorney, health care power of attorney, HIPAA release, living will, and organ donation authorization.  You can change them anytime, so long as you are alive and well.

On the other hand, if your trust is irrevocable, it can’t be changed.

Of course, there are exceptions.  In 2011, most irrevocable trusts are drafted with trust protector provisions so than an independent individual can change the trust terms, without court supervision, to keep the trust in line with the trust maker’s original intent.

In addition, if there are no trust protector provisions in the trust, or they don’t apply, often a new trust, with new terms, can buy the assets of an older trust, with unfavorable terms.  Thus, the trust terms are changed.

These planning opportunities make an irrevocable trust, essentially revocable.  However, it’s important that the trust maker maintain no more control than described herein because control means that the trust assets will be drawn back into the estate and subject to federal estate tax.

Avoiding or minimizing the federal estate tax is likely the prominent reason the trust maker created the irrevocable trusts in the first place.  In 2011 and 2012, if assets exceed the federal estate tax exemption, about 35% of them are taken by the tax.  In 2013, if assets exceed the federal estate tax exemption, about 55%-60% of the assets are taken by the tax.

If you wish to change trust provisions, consult with a qualified estate planning attorney to make sure that any changes are legally valid and don’t have negative federal estate tax consequences.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

Asset protection planning is the process of reorganizing the way your property is owned so that it will be protected from lawsuits and creditors’ claims. If you’re sued, and the Plaintiff bringing the lawsuit wins a money judgment against you, then property you own in your individual name is fair game when it comes to collecting on that judgment.

Many people are under the mistaken belief that simply transferring property into a Revocable Living Trust will serve to shield that property from being collected in payment of a debt or judgment. This is not true. A Revocable Living Trust has a number of benefits, but it is not a tool for protecting your assets from judgment creditors.

Why not? Although property transferred into a Revocable Living Trust is no longer titled in your name, you retain control over the trust itself. So, you could change the terms of the trust, transfer property back to yourself, or even revoke the trust at any time. Since you are the one who ultimately controls your Revocable Living Trust, the assets held by the trust are considered yours for purposes of collecting money owed to someone who has sued you.

In order to truly protect your assets, you and your attorney need to review your entire financial picture and come up with a strategy for appropriately repositioning your assets so that they are out of reach of your creditors. If you are concerned about shielding your property from the possibility of a lawsuit, you’ll want to meet with your estate planning attorney as soon as possible. Once a lawsuit has been filed, it’s too late to protect yourself in this way.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

People really dislike three things: death, taxes and change.

As an attorney I often help clients with their planning to deal with these first two taxes and death. I have found however that often to accomplish these you also have to realize you may need to accept change.

I recently took out a book I had read a few years ago. It was a book published by Spencer Johnson M.D. originally in 1998 entitled, “Who Moved My Cheese?” I thought of it because I was trying to determined how I could make a New Year’s resolution embracing change in my life. The book is about how to deal with change in your work and in your life. I recommend it to anyone.

Simply, the book tells a story of two mice named Sniff and Scurry and two little people named Hem and Haw.   They have to struggle with how to handle change in their life. Cheese is a metaphor for what you want in your life, whether it is a good job, loving relationship, money, possession, health or spiritual peace of mind.

The characters face unexpected change. Eventually, one deals with it successfully and they come to see the “handwriting” on the wall. How we deal with change in our lives may even determine how long we live. Some studies have shown that people who resist change have a higher incidence of certian illness. The “handwriting on the wall” that is discussed in the book is condensed in the following points we should all accept:

Change happens.

Anticipate change.

Monitor change.

Adapt to change quickly.

Be ready to quickly change again and again.

I have decided one of my personal New Year’s resolutions regarding change is that I will be more open to change. I know it will help keep me fresh, aware, alive, open and happier. It will also help to keep me out of a rut. I strongly believe that these are thoughts we could all benefit from adopting.

From now on in our lives we should celebrate uncertainty and embrace change!

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Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

One of the most common problems for the typical family farm or ranch is coming up with cash to pay estate taxes. Most of these family businesses are cash poor because nearly all the worth is invested in land, equipment, livestock and structures. If heirs cannot come up with the cash to cover estate taxes and other fees, they may have no other course of action but to sell the land or equipment just to pay the taxes, thus crippling the business.

While the above scenario is all too common, with less than 70% of family businesses surviving the transfer from one generation to the next, a solid estate planning solution can better protect your assets from estate taxes by giving you more control over which assets pass to your heirs, as well as more control over exactly how your estate among your heirs.

With all the special considerations that farmers and ranchers face when it comes to estate planning, it can’t hurt to get a head start by educating yourself about the unique opportunities and challenges of estate planning that these family businesses face. Or if you’re ready to get started planning for the safe transfer of your family business, contact us for more information.

There are many invaluable resources on this site and elsewhere on the internet that can help educate you on estate planning with specific focus on areas of importance to ranchers and farmers, but we think the simplest way to get the answers and guidance you’re looking for is to contact us directly either through our contact form or calling us at . As professional estate planning attorneys with many years experience dealing with farming and ranching families, we have the knowhow to navigate even the most challenging estate questions. Give us a call at (563) 445-7400!

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

We get this question from clients and others. Can Congress really consider a change to the tax law AFTER THE FACT?

Steve Hartnett the Associate Director of Education st the American Academy of Estate Planning Attorneys has a great blog to answer this question: Click HERE to read a blog about this issue.

Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.

The news media reported broadly that George Steinbrenner, owner of the New York Yankees died in 2010 and saved his family estate taxes. But there are others too: Take a look : Click here for Amercan Academy blog.

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Duffy Law Office is a member of the American Academy of Estate Planning Attorneys.