Solo Solutions

     If you are single, you are in good company. Nearly half of all adult Americans are single. Being single can mean considerable personal and economic freedom. Nevertheless, just like your married counterparts, proper Life & Estate Planning is necessary to keep you in control.

Incapacity & The Law

     Every adult American is responsible for making his or her own personal, health care, and financial decisions. In fact, you may take many basic decisions for granted. For example, you decide where to live, what medical care is appropriate and how to manage your finances. But what if an illness or injury left you unable to make even these basic decisions? Who would make such decisions for you? Who would have your best interests at heart?
     Proper Life & Estate Planning is required in advance of your incapacity, if you want to appoint your own decision-maker. Otherwise, by default you could find yourself in the Probate Court in a legal process that typically employs three lawyers and makes your private personal, health care, and financial circumstances a matter of public record.

Minor Children

     Do you have minor children (i.e., under age 18 in most states)? If so, you probably invest considerable time and money to provide them with a moral, safe, and secure home environment. What if you died while they were still minors? Who would rear them to adulthood? Who would provide the moral, safe, and secure home environment? Unless you want a Probate Judge to make the selection for you, proper Life & Estate Planning is required.
     Who would manage their inheritance until they reach adulthood? Again, that decision would be made by a Probate Judge, in the absence of proper Life & Estate Planning by you.
     If you are divorced, the Probate Court will, absent a showing of unfitness, appoint the surviving biological parent not only to rear the children to adulthood, but also to manage their inheritance. Perhaps worse, if the surviving biological parent then survives your children, they ultimately could receive the inheritance ... along with their new spouse and stepchildren!

Your Valuables

     Is family harmony important to you? Whether it is grandma’s yellow pie pan, antique furniture or that Civil War sword, such items should be identified in your Life & Estate Plan along with the designated recipient of your own selection. Otherwise, your valuables could end up in the hands of the wrong loved one or sold to a perfect stranger in an Estate Sale. Either way, relationships between and among your loved ones could be bruised or battered unnecessarily.

Death, Taxes & Trusts

     Benjamin Franklin noted that there are only two certainties in life: Death & Taxes. While there is little we can do to avoid the former, proper estate tax planning can minimize the latter. One of the best kept secrets for reducing Federal Estate Taxes is giving while you are living. Such giving leverages the Annual Gift Exclusion (AGE) that is available to every taxpayer.
     Under the AGE, each taxpayer may give $13,000 each year to as many people as they wish. This wealth transfer does not trigger gift taxes to the donor or to the donee. Additionally, any future increase in the value of the gifted asset is not included in the donor’s estate for determining Federal Estate Taxes later on. For this reason, gifts of appreciated assets (e.g., stock that is rapidly going up in value) are popular. [Note: Legal counsel should be sought before making AGE gifts because of important capital gains considerations.]
     Are your likely beneficiaries young, inexperienced or perhaps irresponsible? If so, various Trusts can be created to protect your AGE gifts from their potential divorces, lawsuits, bankruptcies, or good, old-fashioned squandering.
     Through carefully drafted Trusts you can control how and when the gifted assets are made available to your beneficiaries. As legendary jurist Oliver Wendell Holmes put it: Put not your trust in money, but put your money in trust.