Idaho Estate Planning

Wounded Idaho Veteran Gets a Little Color in His Life

Nicholas DeNinno was in the 1st Infantry Division, Fourth Brigade, 2-16 Infantry in Fort Riley, Kansas. His brigade was one of the first deployed to Iraq during the surge in 2007. After getting wounded he received a medical retirement in January 2012, and the family moved to Boise. His house was in dire need of some color as the walls were covered in what he calls "heavy handed metalic wallpaper".

A crew of painters from Colorquest in Wendell decided to come to the families rescue and painted the interior walls. You can read the Idaho Statesman story here.

There are opportunities to serve our veterans all around we just need to do something.

Antonio DeNinno, 20 months, looks at his newly painted, mint-colored room, with his mom and dad, Sasha and Nicolas DeNinno. Katherine Jones — kjones@idahostatesman.comBuy Photo Read more here: http://www.idahostatesman.com/2012/10/30/2329287/bringing-some-color-to-the-lives.html#storylink=cpy

Helping Our Homeless Veterans in Boise Idaho

American Postal Workers union, Local 650 in Boise is reaching out to homeless vets and asking for the public’s help. They are putting together backpacks to be handed out on Veterans Day. You can find out more about the project in the Idaho Statesman article found here. You can help by putting together a backpack yourself or by donating money. If you’re building a full pack, here’s what should be inside:

• Flashlight with change of batteries
• BIC lighter
• First-aid kit (band-aids and ointment)
• Thermos
• One set of utensils (not plastic)
• Can opener
• Quart size zip-lock baggies
• Antibacterial no-rinse soap
• Disposable razors
• Toothbrush, toothpaste and mouthwash (alcohol-free)
• Shampoo
• Hairbrush
• Baby wipes
• Roll of toilet paper
• Pen and small pad of paper
• Instant heat packs
• Hooded rain poncho
• Emergency blanket (the kind that folds up, found at sporting goods or automotive stores)
• One pair of warm socks
• One ski cap or ski mask
• One scarf
• One pair of insulated gloves
• Ready-to-eat items, e.g. peanut butter, energy or breakfast bars or fig newtons
• Instant beverages
• Single, ready-to-serve soup or other canned goods
• Cereal packs
• Lunch and snack packs

Notes: All items must be new, except for the backpacks themselves. All food and hygiene items must be in manufacturer-sealed packages. Travel-sized toiletries are ideal. Call Bryan Thompson, APWU president, Boise Local at (650) 869-9927 to find out where the backpacks can be dropped off or for more information.

We at Idaho Estate Planning ask you to join us in supporting our troops and our veterans in any way you can.

Estate Tax Frenzy Hits Idaho

We have discussed the coming changes to the Estate Tax especially as it pertains to gifting in many blogs. On Saturday the Idaho Statesman shared another article worthy of your review. You can find it here.

If you are considering using some of the estate tax planning issues covered in the article you are quickly running out of time. Call us today at 208-939-7658. At Idaho Estate Planning we have ther resources you need to put together an effective and thorough plan for you and your family. Remember, good planning is no accident.

Gun Trusts in Boise Idaho

Do you have any firearms that are collectible and likely expensive? Do you have any firearms that are subject to federal regulations on ownership and use? If yes, then careful planning may be required to avoid running afoul of tax and regulatory laws upon your incapacity or death.

Planning to give away your estate property is often about understanding your loved ones and family members, but proper planning is also about understanding the assets you are giving and the snares to avoid. You own different assets in accordance with different laws, so you must take these elements into consideration when giving them away.

Many firearm owners take great pride in their collection and also hope to pass them along to their loved ones. Failing to plan for the legal ownership transfer, however, can result in accidentally triggering illegal transfers. Accordingly, if you own a firearm or even a firearm collection you plan to leave to family or loved ones, then a “gun trust” may be in order. A recent article in AmmoLand, titled A New Breed of Gun Trusts – Protecting Firearms Collectors & Their Collections, makes this point very clearly.

A properly written gun trust can skirt tax and regulatory pitfalls. When drafted correctly, trusts are very powerful and specially-tailored legal tools for giving all sorts of unique assets. In Boise as well as the rest of Idaho you can count on Idaho Estate Planning to be your source for facets of planning for the future. Call us today at (208)-939-7658.

Women Have Different Concerns When Transferring Wealth

Planning your wealth transfer can be complicated. While there are many elements to consider, forgetting the “family factor” could be detrimental.

Obscure laws, politics, budgets, financial markets, returns, etc., are all important elements of wealth transfer. Unfortunately, for many planners, it’s a sad irony that they oftentimes overlook the true object of the process – the inheritors. So, how do inheritors factor into planning?

Earlier in the year Financial Planning magazine weighed in on this issue with an article titled, “Younger Inheritors, Women Concerned About Pitfalls of Wealth.” The article featured the results of a survey by Campden Wealth and Morgan Stanley Private Wealth Management. This survey examined multiple generations within high-net worth families for their opinions on their family estates and their roles in planning for the future. The results are telling.

79% of next-generation inheritors responded that they wanted to be good stewards of the family wealth. In fact, they want more involvement in the finances. Although these respondents diverged regarding what they would do with the investments, most were enthusiastic.

It’s clear that families planning for wealth transfers should consider bringing the inheritors to the table sooner rather than later. The educational opportunity is profound when an interest is present.

Interestingly, 79% of female inheritors indicated concern over how the impact might affect them. They also expressed concern over potential mismanagement of wealth outside of their control. Education is certainly essential regardless of gender, but perhaps more so for females. Traditional stereotypes still remain relevant.

In either case, the biggest takeaway from the original article is this: today’s inheritors are eager for information and inclusion.

Whether your estate is monstrous or modest, when it comes to the ultimate inheritors, a little foreknowledge will go a long way toward ensuring the success of your wealth transfer.

At Idaho Estate Planning we are the experts you need to know and trust. Work with us and we'll put together a plan that works for you and your loved ones. Remember, good planning is no accident.

Planning and Caring for Those with Special Needs

Have you heard that the best defense is a strong offense? So it is with making long-term plans for family members with special needs. In the end, such family members will be okay and you will have peace of mind.

Unfortunately, few parents of children with special needs fully appreciate what is at stake and how to protect it. To make matters worse, too few professional financial planners are versed on the need to provide a long-term solution for such children, especially with shrinking public assistance benefits.

The New York Times recently provided a mini-primer of sorts on the subject titled “Assuring Care of a Family Member With Special Needs.” While proper planning will vary from one family to another, given different needs, there are many tools to employ ranging from special needs trusts to life insurance. The key is to know which ones to use.

As the article notes, special needs planning is only going to grow in importance as funds available for public assistance programs –  Medicare, Medicaid, Social Security, etc. – become more restricted and uncertain. 

We've said it before, proper planning starts with a thorough understanding of your needs, goals, dreams and aspirations. It takes into account your Values not just your Valuables. It starts with a thorough understanding of your family – those who you care about and who will someday receive the benefits of your success – and your family's dynamics. Let's work together to implement an estate plan that works for you. Remember, good planning is no accident.

Consider Your Medicare Options

The Medicare enrollment period has begun. For some, the process is frustrating and confusing. If you aren't sure which option is best for your situation you may want to read this article printed in the Idaho Statesman yesterday. The article can be found here. Along with the artice was a very nice list of tips for choosing the best Medicare option. Here is the list:

TIPS ON SAVING MONEY, PICKING THE BEST OPTION

• Shop around, even if you’re happy with your current plan. You might be able to save money out-of-pocket while preserving your benefits.
• Remember that with Medicare Advantage, there is no need to buy Medigap insurance. Your medications are most likely covered, too — though not always — so there may be no reason to pay for a Medicare Part D drug plan, either.
• If you like your current doctor, make a call to the office to make sure he or she still accepts your plan after the new year. Or, if you’re leaving an employer-sponsored plan and want to remain with that doctor, find out what Medicare plans he or she accepts.
• Likewise, if you’re new to Medicare but like your current insurance, call your insurer. It might have a Medicare version of your current coverage. That can keep you from switching doctors, changing drug coverage or even switching your pharmacy.
• If you’re looking for Part D coverage, focus on the medications that you know you need rather than stressing about medications you might never need. Remember that health care reform is forcing discounts on drugs that fall into the previous coverage gap known as the donut hole.
• Remember that the drug plan that is best for you may not be the best plan for your spouse. Most likely, medication and health needs are different, and your most affordable options will differ.
• When you’re ready to dive in and compare policies, have a list of medications ready so you can compare your options.
• Don’t be afraid to enlist the help of your grown children, a trusted friend or trained counselors.
• From Gail Jensen, an economics professor at Wayne State University and a researcher at its Institute of Gerontology.

Read more here: http://www.idahostatesman.com/2012/10/22/2318764/medicare-changes-to-consider.html#storylink=cpy

Applications for Medicare and Medicaid are important and should not be taken lightly. If you, or a loved one, need to make plans for long-term care, then you need to schedule a consultation with us right away, before you take any actions. Remember, good planning is no accident.

IRS Tax Free Gift Exclusion For 2013 Increasing

When it comes to estate planning, it ultimately comes down to what the laws themselves provide. But fear not, not all questions of estate planning law come down to politics. For example, with no political posturing involved at all, the annual exclusion amount is set to rise for the first time since 2009.

The Wall Street Journal broke the good news as early as it could, in a Q&A entitled “Expect Gift Limit to Rise Next Year.” First, a caveat: it’s not the present lifetime exclusion of $5.12 million you can expect to see increase, as the jury is still very much out on that one. Rather, it’s the annual gift tax exemption presently set at $13,000.

Currently, you can exclude $13,000 per person per year, before ever reducing your lifetime exemption amount. Good news: that amount is set to adjust up to $14,000.

We await official numbers, but they should arrive later in the year. If and when the annual gift exclusion increases, this will bring a welcome bump in your wealth transfer opportunities.

If nothing else, the attention given to this uptick in the annual gift exclusion also may offer a wake-up call to the power of annual giving. Just think of what you can do for each of your loved ones with an annual gift of $14,000.

Likely your loved ones could use the extra assistance in these tight financial times, and you get the benefit of seeing their stewardship (or lack thereof). In fact, depending on whether they are wise or foolish with the gift, you can make adjustments to your estate plan accordingly.

At Idaho Estate Planning we are the experts you need to know and trust. Work with us and we'll put together a plan that works for you and your loved ones. Remember, good planning is no accident.

Never Underestimate the Protection of a Revocable Trust

Trusts are powerful devices. In fact, even “revocable” trusts can afford valuable protection. Consider the case of Frank and Geryl Pearl, as reported in a recent Forbes article titled “Pearl -- Transfers to Revocable Trusts Were Not Fraudulent Transfers As To Creditors Of The Settlor.”

Essentially, the Pearl case illustrates the magic of a revocable trust. Frank, upon a cancer diagnosis, moved his business assets under a revocable trust, which meant that he was still effectively accountable for everything because the “revocable” trust was still under his control for all intents and purposes. Frank arranged for the bank to name him personally as guarantor to the business loans. Geryl was named beneficiary to the trust. When Frank died, the assets in the trust that were otherwise entirely accessible to the bank and other creditors passed over to Geryl and were completely inaccessible to the creditors. Poof! How did this happen? As summarized by Forbes:

“It should not be overlooked that a revocable trust can provide near-absolute asset protection to the beneficiaries of the trust after the settlor dies, so long as the trust is well-drafted, has only discretionary distribution, and a solid spendthrift clause. What is no protection for the settlor almost magically turns into fantastic protection for beneficiaries after the settlor’s death. A beneficiary’s interest is simply not acceptable by creditors except in the most extreme cases, such as unpaid child support or if the beneficiary commits a violent crime, etc.”

The issues surrounding how to create the trust are worth mulling over, but just as important is the planning that goes into creating the trust and the correct timing to maximize its value. You can make good use of this timing given the present generous state of our estate and gift tax law, along with the currently depressed asset values.

Again, whether it's thinking about the funds to put in the trust or the future of the inheritor, there's no time like the present! Call us today and schedule a consultation and estate plan analysis. Remember, good planning is no accident.

Long Term Care for Wartime Veterans

We have spoken many times about the non-service related benefit offered by the Veterans Administration knows as "Pension". Pension has many levels and many names. You may have heard it referred to as Aid & Attendance, Housebound Benefit or Pension Benefit. It is always nice to find someone else talking about this under utilized benefit for our vets. I recommend reading "VA Benefits For Long-Term Care of Veterans and Their Surviving Spouses"  on the estateplanning.com website.

The Pension Benefit could pay as much as $2,020 a month in disability income to a qualifying veteran household. A study commissioned by VA in 2001 estimated that, over the next 14 years, only about 30% of eligible veterans would apply for Pension. This is likely due to the fact that most veterans simply don't know about it. In fact, about a third of all seniors in this country, age 65 and older, could become eligible for pension under the right circumstances. That's how many elderly war veterans or their surviving spouses there are.

At Idaho Estate Planning we understand how to maximize the benefit or avoid a denial. We can also provide guidance for meeting the asset test. We provide the best strategies for reallocating assets through trusts or income conversions to allow for the best possible accommodation of assets for beneficiaries thus avoiding or reducing: taxes; family disputes; and, Medicaid penalties.

We are VA Accredited and we know how to help you get the benefits you earned through your greatly appreciated service to our country. Good planning is no accident. To secure your peace of mind as well as your family's future, get started now. Remember, good planning is no accident.