Legacy planning certainly involves very specific pragmatic objectives. First of all you are going to want to inventory your assets and evaluate who exactly will be benefiting from your estate. With the assistance of an estate planning attorney you then decide how you will be transferring the assets. This is very important because there are sources of asset erosion that exist, and if you don’t do things properly your loved ones can pay a hefty price.

One of these sources of asset erosion is the estate tax. At the present time the rate of the tax is 35% and the exclusion is $5 million, so the federal government will consume over a third of the taxable portion of your estate as the laws stand on this day. However, these parameters are not permanent. At the end of next year the maximum estate tax rate is going up to 55% and the exclusion is going to be reduced to just $1 million. As you can see, this federal levy could have a life-changing impact on the family that you will be leaving behind.

Once you have your ducks in a row from a financial perspective you may want to consider adding something called an ethical will to your estate plan. These documents do not involve the transfer of property and they are not legally binding. An ethical will is used to pass along information to your loved ones that you feel would be useful to them.

These documents have been utilized for centuries as a way to pass along wisdom to succeeding generations, and traditionally people who compose one share their ethical and spiritual values. However, there are no hard and fast rules rules; you’re perfectly free to express anything that you would like to when you compose an ethical will.

Financial resources are great, but they can’t buy knowledge and wisdom. We all must part from our families at some point, but if you leave behind an ethical will they will always have your experiences and insights to draw from.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Many people have heard of the “trust fund” assuming that it is something that only people who are extremely wealthy would have any reason to consider. This is not entirely true at all, because the creation of revocable living trusts can actually benefit many people who would not by any means consider themselves to be extraordinarily wealthy.

The primary reason why the creation of a revocable living trust may be preferable to a last will as your primary vehicle of asset transfer is because the trust enables probate avoidance. Probate is the legal process that your estate must pass through before your heirs can receive their inheritances when you use a last will. Two of the reasons why many people do what it takes to avoid probate is because this process can be costly and time consuming.

Depending on the size and scope of your assets and the exact nature of your wishes the process of probate can result in costs that can consume as much as 5% of the value of the estate and even more in some cases. And the time lag involved can be anywhere from several months to several years in some complicated instances.

In addition to the above, probate is a public proceeding and a matter of public record and there are those who would prefer that their affairs remain confidential. Probate also provides an open door to will changes and there are those who want to keep this door tightly shut.

You can avoid all of the pitfalls of probate through the creation of a revocable living trust. With these trusts you act as the trustee and beneficiary while you are living so you maintain full control and you can change the terms or even terminate the trust if you decide to do so. But when you pass away, the assets are transferred according to your wishes by the trustee of your choosing in a smooth and efficient manner outside the process of probate.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

One of the objectives of estate planning involves the prevention of asset erosion. You may think that transferring assets to your loved ones after you pass away should be something that you can do without incurring any significant expenses that reduce the value of your legacy. Perhaps unfortunately, the federal government has other ideas.

There is a federal estate tax in place that is imposed when people are passing along their assets to their heirs after they die. At the present time the rate of this tax is 35% so it is no small drop in the bucket. And as the laws stand on this day, the rate of the federal estate tax is scheduled to rise to a rather attention-getting 55% in the beginning of 2013, so this is a matter that you would do well to take very seriously.

Not everyone has to pay the estate tax, but contrary to popular belief it is in fact imposed on people who would not consider themselves to be extraordinarily wealthy. The estate tax exclusion draws the line in the sand between those who must pay the tax and those who are exempt.

At the moment the exclusion stands at $5 million, but when 2013 rolls around in addition to the rate of the tax rising to 55%, the exclusion is going down to just $1 million. This is going to result in a lot more people being exposed to the tax, and remember, the value of your home is indeed a part of your estate.

There are ways to gain estate tax efficiency however. Asset erosion due to the imposition of the estate tax is a very real threat to the legacies of many Americans. If you have not already addressed the matter, the wise course of action would be to arrange for a consultation with an experienced estate planning attorney to develop a personalized plan that provides you with estate tax efficiency.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

When you go on any type of a journey you are going to make careful advance preparations. You don’t just set out blind with no map, supplies, equipment, or itinerary. If you’re smart you make sure that you are prepared to handle just about anything that fate should send your way.

With this in mind, your life’s journey should be properly planned for, and there are distinct different stages to take into consideration. One of these would be the period of time that is often referred to as the “twilight years.” This is the interim that lies between your active retirement years and your ultimate passing.

At the present time the average life expectancy in the United States is 78.7 years. Of course this is indeed an average; the fact is that the segment of the population aged 85 and over is the fastest-growing group among us. Of course when you reach such an advanced age certain challenges exist. One of these is the possibility of incapacity.

Physical maladies can result in incapacitation as we all know, but many seniors suffer from mental incapacity as well. Alzheimer’s disease is a big threat with approximately 4 out of every 10 individuals who are 85 years of age and older suffering from the disease. Alzheimer’s sufferers experience dementia and often become unable to make sound decisions for themselves.

If you want to be comprehensively prepared for possible incapacity you would do well to handpick your own potential decision-makers via the execution of durable powers of attorney. With these documents you can appoint attorneys-in-fact to make financial and medical decisions in your behalf should you become unable to communicate them yourself due to incapacitation.

It is a good feeling to know that people you trust are empowered to act in your best interests come what may. If you are interested in learning more about incapacity planning, simply arrange for a consultation with an experienced elder law attorney.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

If it is viewed in its proper context, legacy planning is a long-term process. There are individuals who go through life strictly and exclusively concerned with their own ability to meet their expenses up until the time they pass away. These people are not concerned with what they are going to be leaving to their loved ones if anything. Others take a different approach and set very specific legacy goals. To meet these objectives they have to adhere to a holistic plan that impacts their ongoing behavior.

If you are carefully crafting your legacy it is important to do everything possible to protect your assets. One of the best ways to build wealth is to get involved in successful business ventures, but of course there are certain risks involved as well. You don’t want to put your assets in harm’s way so you have to be careful about the way that you create the business entity.

A lot of people will utilize limited liability companies in an effort to protect assets when they are entering into a business venture on their own or with a limited number of others. These entities are sort of like a hybrid between a corporation and a sole proprietorship or partnership. The value lies in the fact that the owners of the LLC, called “members,” can’t be held personally liable for the actions of a limited liability company.

There are limits to the asset protection that limited liability corporations provide, but there are many benefits as well. If you are interested in exploring the matter in-depth, the logical first step would be to get in touch with an experienced financial planning attorney to arrange for an informative consultation.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Retirement can conjure a lot of images in the mind’s eye. You may picture yourself lounging on a tropical beach with a cocktail in hand watching the waves gently lick the alabaster sands, or simply imagine an everyday lifestyle of arising whenever you choose to with an open-ended itinerary in front of you. Life is for living, and there is certainly nothing wrong with looking forward to your golden years with very positive expectations.

However, in the end “retirement” is not a state of mind…it is simply a word describing the act of putting your working years behind you. To be able to do this you’re going to have to have the financial resources to pay your way without earning a paycheck or operating a business. For most people, this is going to take careful and concerted advance planning.

The sad truth is a very high percentage of people find this out after it is too late to do anything about it. There was a poll conducted recently by the Associated Press in conjunction with Life GoesStrong.com that was intended to gauge how prepared baby boomers are for retirement. About one-fourth of the respondents said that they would never be able to retire, and well over 40% of them stated that they were not confident they would be able to retire in comfort.

When you recognize the need to plan for the future your first impulse may be to accumulate savings. Of course this is a good idea, but debt reduction is important as well. Debt comes along with interest, and the sooner you extinguish it the better off you’re going to be during your retirement years. Along these lines, you may want to think very long and hard about incurring debt unnecessarily if you are serious about meeting your retirement goals.

To be prepared for retirement you have to map out a plan and stick to it. If you’re not a financial expert in your own right, the best way to go about this would be to engage the services of a good retirement planning attorney who will listen as you explain your objectives and place you on a path that leads to the realization of your retirement vision.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

The federal estate tax looms large as a source of asset erosion, and if the laws stay the same as they are right now large numbers of families who are presently exempt from the tax will become subject to it. As of this writing the estate tax exclusion stands at $5 million, and the top rate of the tax is 35%. These parameters came about due to provisions contained in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which was passed in December of last year.

This tax relief act is scheduled to expire when 2012 comes to a close. In 2013 the estate tax rate will increase to 41%- 55%, and the exclusion is set to be reduced to $1 million. Most people who are planning for the future are not expecting to die within the next year, so when you are evaluating your potential exposure to the estate tax you may want to work with this $1 million figure.

It is of course possible that yet another tax relief measure could pass between now and the beginning of 2013 that would increase the estate tax exclusion. However, as everyone is well aware we are in the midst of a budget crisis. A lot of people are calling for increased revenue as a way to reduce the federal debt.

In fact, a Congressional super committee has been charged with the responsibility of reducing the debt by $1.5 trillion over the next 10 years. Things like cuts to Medicare and Social Security are being seriously considered. So it may be difficult to convince some people that estate tax relief should be a priority given the desperate calls for deficit reduction.

The suggestion here is to be proactive about protecting your family from the ravages of the estate tax. Get together with an estate planning attorney and create a legacy plan that provides you with estate tax efficiency so that your loved ones don’t watch a significant portion of their inheritances go down the drain.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Far too many people find themselves unprepared for retirement, and if you don’t want to be one of them you would do well to devise an intelligent plan and stick to it. Depending on your resources and the nature of your career path exactly how to go about this is going to vary.

A lot of people who look toward the future at a young age decide to join the military with an eye on retirement. After 20 years of active duty veterans qualify for a retirement pension. They receive this pension for life, and this in itself can go a long way toward feathering your nest for retirement. However, if you embark on a military career when you are a young adult you have plenty of time to move on and into a career position in the private sector after serving 20 years to qualify for the military retirement pension.

Since you will be earning an income via your civilian job, you could choose to save and/or invest your pension benefits until it becomes time to retire from your private sector position. You could also contribute into the 401(k) plan at work and have this retirement savings account to draw from along with your retirement pension and Social Security benefit. This is in addition to the accumulated savings that you have as a result of putting away your military pension checks while you were still working.

Another benefit that people are often unaware of is the Veterans Aid and Attendance special pension. This can augment your incapacity plan because it provides up to $1062 per month for eligible veterans who need help with their day-to-day needs. The length of service requirement for this veterans benefit is modest; you must have served at least one day during wartime and a minimum of 90 days in all.

To learn more about long-term planning for veterans, take a moment to arrange for a consultation with an experienced and savvy legacy planning attorney.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Ever since it was first adopted back in 1916 a lot of people have been in favor of repealing the estate tax. They feel this way for a number of reasons. For one, the estate tax is selectively imposed and where the line is drawn varies from one year to another. So two people who pass away with the same amount of money can pay widely differing amounts. One family can be exempt from the estate tax entirely while another who died during a different year with identical resources could be asked to pay seven figures.

Another reason why the estate tax is assailed from some quarters is because it is an instance of taxing funds that remain after you already paid all sorts taxes throughout your life. Any savings that you accumulate are going to be earnings that you were able to hold onto after paying income and payroll or self-employment tax, and of course you pay sales tax, property tax, capital gains tax and any number of other taxes every step of the way. Many question why you should be taxed again for the transgression of dying.

Those that have always wanted to see the estate tax repealed were happy to see 2010 roll around. Due to provisions in the Bush era tax cuts, the estate tax was scheduled to be repealed during 2010, and throughout most of the year it was. But in December the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was passed and the estate tax came back with it carrying a $5 million exclusion and 35% maximum rate for 2012 and 2013.

In addition, it was retroactively applied to the beginning of 2010, essentially repealing the repeal. But, lawmakers recognized that a retroactive imposition of the estate tax after it was legally repealed could breed legal challenge. So personal representatives and executors can opt out of the estate tax for 2010 by filing IRS Form 8939, which is finally supposed to be available on November 15th.

This was certainly a rather difficult chronology to keep up with, especially if you are a layperson. This kind of thing underscores why it is a good idea to engage the services of an experienced estate planning attorney and keep in touch as the laws continually change.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

We live during an era when people live very busy lives, and when you are always on the go and reacting to the things that take place on a day-to-day basis time can get past you rather quickly. A lot of people will tell you that they know they have to plan for the future and they have every intention of doing so. But the days turn into weeks, weeks turn into months, months turn into years, and years turn into decades and too many wind up putting their families in a difficult situation due to a lack of preparation for the future.

This may sound like idle speculation, but the facts indicate that the majority of Americans have not made any plans at all for the latter portion of their lives and eventual passing. A Harris interactive survey that was released late in 2009 painted a rather grim picture. Only 35% of the people who participated in the survey had drawn up a last will to elucidate their wishes with regard to the eventual distribution of their assets to their loved ones after their deaths.

Though you would expect people who are younger to perhaps procrastinate when it comes estate planning or feel as though they simply have plenty of time to do it in the future, a surprising number of older Americans were totally unprepared. Some 23% of people who were older than 55 years of age said that they had not executed any estate planning documents all.

19% of the people who did not have an estate plan said that the reason for this was because they didn’t feel as though they had enough assets to be concerned about it. What they may not be taking into consideration is the fact that execution of advance health care directives stating your wishes regarding medical procedures is essential regardless of the extent of your resources.

The bottom line is this: Estate planning is important for everyone, and if you are not currently prepared for the future you may want to take action and arrange for a consultation with an experienced estate planning attorney sooner rather than later.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.