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Note: Nothing in this publication is intended or written to be used, and cannot be used by any person for the purpose of avoiding tax penalties regarding any transactions or matters addressed herein. You should always seek advice from independent tax advisors regarding the same. [See IRS Circular 230.]

Volume Eight Number Two February 2010

Keys to Avoiding Common Estate
Planning Mistakes

Five Common Estate Planning Mistakes

Common Estate Mistakes Quick. When you hear the words estate planning, what mental images do you see? Do you see beautiful, tanned people with incredible wealth, living in enormous mansions, riding in shiny limousines and boarding private jets bound for exotic destinations? If so, then you are only partially correct. In reality, everyone has an estate worth planning. Some are just more complex than others. In this article we will review five basic estate blunders common to princes and to paupers alike, from Wall Street to Main Street.

#1 Incapacity Issues

On your 18^th birthday you are considered an adult American citizen and you become responsible for your own personal, health care and financial decisions. Even your parents become strangers to you, in a legal sense, should you become incapacitated. This same legal strangerhood applies, by the way, between spouses.
As a result, every adult American, married or single, should appoint agents through proper Durable Powers Of Attorney to make their personal, health care and financial decisions in the event of their incapacity. Alternatively, a probate court process involving at least three lawyers may be required to appoint agents to make such decisions for you under the ongoing supervision of the court. And this can be rather expensive and invasive of your privacy.

Learn how you can avoid making common estate planning mistakes...

Family Feuds

Avoiding Family Feuds The bloody feud between the Hatfields and the McCoys ended well over a century ago, spanned two decades and resulted in a dozen deaths in and around the Appalachian area of eastern Kentucky. This famous inter-family feud had all of the elements of a Hollywood drama.
While the Hatfields and the McCoys may have settled their differences long ago, intra-family feuds are rather common these days following the death of a family member. That fact was confirmed in a survey conducted by the AARP/Scudder Investment Program of Americans age 50 and over. According to the survey, 20 percent of the respondents cited problems among surviving family members due to their inheritance, or lack thereof. More often than not, these feuds are over tangible personal property and family business interests.

Learn more about ways you can maintain family harmony -- even from the grave..

Did You Know?

Did you know that:

While three in ten Americans DO have a plan, the average age of a will coming into a law office for update or probate is nearly 20 years?
A Power of Attorney of similar vintage may be rejected by banks and other third parties?
In three out of four cases, a Health Care Directive (also sometimes called a "Living Will") is unavailable when needed?
Nine out of ten Americans MISTAKENLY believe that life insurance proceeds are automatically exempted from Federal Estate Tax?
The Wills of most married couples control ONLY personal effects?
There are legitimate means of leveraging the $13,000 annual gifting exclusion, of avoiding capital gains tax on super-appreciated low-yield assets, and of ensuring that 99% of assets flow to the next generation in a thoughtful, protected manner?

Identity Theft Help

According to the Federal Trade Commission’s Consumer Sentinel Complaint Count, identity theft complaints rose from just over 30,000 to more than 300,000 from 2002 to 2008. Identity theft occurs when a criminal obtains access to your personal information and then uses that information to obtain goods, services, credit and even commit crimes using your identity. The imposter makes out like a bandit and you are left financially ruined … or even under criminal investigation. As information technology advances, so does the risk of identity theft.
The Identity Theft Resource Center (ITRC) is a nationwide nonprofit organization dedicated to helping people prevent and recover from identity theft. For more information call the Center at (858) 693-7935 or visit their Web site. The ITRC is affiliated with the Privacy Rights Clearinghouse, which as its name suggests, is concerned with myriad privacy issues. For more information call the Clearinghouse at (619) 298-3396 or visit their Web site.

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