Idaho Estate Planning

Treasure Valley Digital Assets Remain Largely Unprotected

You may be well aware of your assets, but what about those “digital” ones? What is a “digital asset” anyways? Think about everything you “own” online and all the accounts you’ve created. Ringing a bell? Yes, those virtual assets need protection just as much as your physical assets do.

Proper planning means planning for all the lives you lead. It used to be that you had your life in the flesh and then you had your life in paper, that is, your accounts and records and even contracts. Nowadays, you live much of your life on the internet.

Your online life requires that information about your digital assets and accounts (especially passwords) must be included as part of your comprehensive estate plan. In turn, this information must be kept up-to-date and made available to your executors (also known as personal representatives), financial agents and trustees.

Likely, the digital age will only get more complex. Kiplinger recently addressed this subject of digital assets in a postmortem planning context in an article titled “Protect Digital Assets After Your Death.”

Everything from simple email accounts to Twitter, Facebook, Pinterest and then all the way to investment and banking sites, each of these contains information that can be of immeasurable value economically or sentimentally.

For example, what about your iTunes music collection or Kindle book collection? On the other hand, if your digital information is not secured postmortem, then it could become a liability in terms of identity theft.

Bottom line: without a comprehensive list of accounts and passwords, executors, trustees and even heirs might have a hard time accessing and/or closing your accounts.

Do not expect any help at common law either. These are largely uncharted legal waters. In fact, internet companies themselves are only just starting to address this issue.

For more information on this subject, contact Idaho Estate Planning and schedule a consultation. Remember, good planning is no accident.

How We Benefit from Being Grateful

Researchers Robert A. Emmons, University of California, Davis and Michael E. McCullough, University of Miami have been conducting a study on gratitude. Three groups of participants in the study were asked to keep journals. One group used their journals to record the hassles and problems they had faced, the second group recorded neutral life events while the third group kept “Gratitude Journals” listing the experiences and things they were grateful for each week. Following are highlights from the “Research Project on Gratitude and Thankfulness - Dimensions and Perspectives of Gratitude”.

• In an experimental comparison, those who kept gratitude journals on a weekly basis exercised more regularly, reported fewer physical symptoms, felt better about their lives as a whole, and were more optimistic about the upcoming week compared to those who recorded hassles or neutral life events (Emmons & McCullough, 2003).
• A related benefit was observed in the realm of personal goal attainment: Participants who kept gratitude lists were more likely to have made progress toward important personal goals (academic, interpersonal and health-based) over a two-month period compared to subjects in the other experimental conditions.
• Participants in the daily gratitude condition were more likely to report having helped someone with a personal problem or having offered emotional support to another, relative to the hassles or social comparison condition.
• In a sample of adults with neuromuscular disease, a 21-day gratitude intervention resulted in greater amounts of high energy positive moods, a greater sense of feeling connected to others, more optimistic ratings of one’s life, and better sleep duration and sleep quality, relative to a control group.

The researchers have found that “grateful people report higher levels of positive emotions, life satisfaction, vitality, optimism and lower levels of depression and stress.” Ones thankfulness also has an effect on how others see them. “People with a strong disposition toward gratitude have the capacity to be empathic and to take the perspective of others. They are rated as more generous and more helpful by people in their social networks”

Other traits found to be improved or enhanced by an attitude of gratitude are include Well Being, Sociality, Spirituality and a healthier view on possessions and materialism.

The holidays are a great reminder of the importance of gratitude the challenge to each of us is can we take that frame of mind and carry it through the rest of our lives. If we do, research tells us we will live a happier, less stressful and more meaningful life.

Digital Asset Planning - Don't Leave Your Heirs a "Blue Screen"

Technology has changed the way we view assets, as we now have virtual assets to protect in addition to our tangible property. Our estates now include digital assets like online banking and brokerage accounts. Web-based businesses are increasing and owning property in cyberspace has become a reality. So what happens to our virtual life when our physical life is over?

What happens to everything on the cloud when you die?

From your personal information to Facebook accounts to iTunes collections, so much of it exists online. Until recently, there have been few solutions to the meticulous record keeping to keep everything straight, let alone remembered.

Recently, The Wall Street Journal reported in an article titled “Google Lets Users Plan ‘Digital Afterlife’ By Naming Heirs” that Google has become amongst the first and likely the largest company to offer users a proactive digital-estate planning tool - the “Inactive Account Manager.”

The important take-a-way is the importance of the planning. What about your other accounts and bits of data snaking across the web? What plans have you made to document your virtual life into the afterlife? If you haven't taken care of your digital estate legacy contact Idaho Estate Planning and schedule a consultation. Remember, good planning is no accident.

Learn From Pope Benedict - Retire On Your Own Terms

Many were surprised at the recent announcement by Pope Benedict XVI to step down from his post. This decision is sure to go down in history, and it triggers an important question in those with lifelong careers – when is the right time to retire?

While you may not have the same problems or responsibilities as the Pope, have you reflected on your own future and when may be time to step down? This especially is true if you have no mandatory retirement age for your position.

A recent Marketwatch article titled “Retirement lessons from Pope Benedict” explored this timely issue. Whether you are the Pope, a business owner, or even a CEO there is always the question of succession. Aside from the business aspects, on a personal level make sure your advance health directives are current in the event you became infirm or incapacitated. While you are at it, a good top-to-bottom review of your estate planning likely is in order.

Whether you are responsible for millions or just a few, the take-a-way is the same - always be prepared! Come talk to us regarding your retirement and/or succession plans. At Idaho Estate Plannign we are the experts you know with the resources you need. Remember, good planning is no accident.   

Email & Log Ins & Passwords - Oh MY

Your Estate Plan is in place, your trust is fully funded, all your medical directives are up to date and you breathe a sigh of relief knowing you are prepared for the future. Then you sit down at the computer to do some online banking or retrieve some email and you're struck with panic. Nobody knows how to get to all that information, not even your spouse.

The scenario above is all to common. The online version of the Wall Street Journal recently posted an article I suggest reading titled "What a Tangled Web We Leave". It reveals a need for the new and growing field of Digital Estate Planning, which in its simplest form is making sure your family and other interested parties will have access to all your important electronic data after you have passed away or become incapacitated.

If you suddenly realize you are woefully lacking in this area of your planning, give us a call and we will help you get your estate plan in such a condition that you can once again breathe a sigh of relief. Remember, good planning is no accident.

One Billion Dollars in Unclaimed Insurance Benefits

Consumer Reports recently published an article you might enjoy reading. It seems an unlikely scenario in this day of almost instant access to information of all types but many benefits remain unclaimed. The article states, "At least $1 billion in benefits from misplaced or forgotten life-insurance policies are waiting to be claimed by their owners. The odds that you’re one of them are 1 in 600, more favorable than your chance of winning $100 on a Powerball ticket. And although you can’t expect a million-dollar jackpot—the average unclaimed life benefit is $2,000—some payouts have been as high as $300,000."

So if you missed out on that 200 million dollar PowerBall payout maybe it would be worth your time to read the article and see if you have a windfall in your future. You can find the article here. And when you're done reading whether or not you stand to profit from a long lost insurance claim call us for your estate planning and elder law needs.

http://www.consumerreports.org/cro/magazine/2013/02/how-to-find-lost-life-insurance-policies/index.htm

Portability Provision Extended in Fiscal Cliff Deal

The good news has resounded and there is much to celebrate with the passing of ATRA 2012 (or the Fiscal Cliff deal). One particularly positive element of ATRA 2012 is the continuation of certain estate and gift tax laws.

A recent Forbes article titled “A Married Couple's Guide To Estate Planning,” explores some important considerations when it comes to fundamental estate planning.

As so many of us hoped it would, the fiscal cliff-bridging budget extended the provision known as “portability.” As you may know, portability is the ability to pack up the unused tax exemption of the first spouse – that is, their gift/estate tax exemption – and pass it on to the surviving spouse. The surviving spouse doesn’t have to worry quite as much about triggering the estate tax when they pass. Why? Because they now have everything they own plus everything their spouse left them, and all of it can be sheltered from estate taxes by the estate tax exemptions of both spouses.

The original article has more to say regarding how to secure this portability. For that matter, portability is also a limited achievement and a limited kind of protection between married persons.

There is more to “portability” and proper estate planning than meets the eye. 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.

Fiscal Cliff Deal’s Effect on Long-Term Care

Congress has averted the “fiscal cliff” for now, but there was one law that fell over the cliff anyways. The Community Living Assistance Services and Supports (CLASS) Act, which was intended to deal with the issue of long-term care for seniors, has been repealed. What did politicians do to address this issue? Not surprisingly, a “commission” was formed.

The CLASS Act and the new commission formed to study the delivery (and financing) of long-term care was the subject of a recent Forbes article titled “Fiscal Cliff Deal Repeals CLASS Act, Creates Long-Term Care Commission.” As summarized in the title of this Forbes article, The American Taxpayer Relief Act or ATRA – does two things in the field of long-term care: first, it officially ends the CLASS Act, and second, it forms a new bipartisan commission to “tackle” the matter.

Is it a good trade-off? For starters, the CLASS Act had already been abandoned by the administration and Congress alike. On the other hand, this new commission might not find an alternative new solution. As the Forbes article notes, the commission is a “political commission” rather than a panel of subject matter experts. The commission has been given a window of six months to conduct its business.

The crisis of long-term care in America is still an important issue, and it’s hard to tell what the future holds for this matter. Now is the time for individuals to take responsibility for their long-term care, so be sure to consult competent legal counsel and your long-term care insurance agent to examine your options. 

Trying to keep up to date on issues faced by America's Elderly can be a daunting task. At Idaho Estate Planning, we understand these challenges. We have the experience and expertise to help you maintain your options and protect yourself as well as your loved ones now and into the future. Remember, good planning is no accident.

Mixed Numbers For Charitable Giving in 2012

A new year of giving has begun, but many are curious about the sum from wealthy donors for 2012. The numbers are starting to come in -- how did last year compare to 2011? Unfortunately, and according to a summary post by the Chronicle of Philanthropy entitled “America’s Wealthiest Donors Slow Their Giving,” 2012 was not a good year for charities or a big year for donors.

In fairness, 2012 will first and foremost go down as a year of great indecisiveness, whether it was the presidential election or the deal that brought us over the fiscal cliff. But political indecisiveness gives rise to a tricky environment for charitable intentions. That said, the largest gifts by American philanthropists totaled a whopping $5.1 billion, except when you account for the fact that Warren Buffet gave away $3 billion of that total. By comparison, the largest gifts by American philanthropists totaled $2.6 billion in 2011. Without Buffet’s gifts, the 2012 total would have been $2 billion, falling under 2011’s totals.

Now, this kind of assessment isn’t an entirely fair estimate of the direction of the charitable energies of all donors. In fact, the list only accounts for the top ten public donors, thereby ignoring the many small donors who you may recognize as those not being featured on the cover of Forbes. Nevertheless, it seems to be indicative of an overall mood.

So, if 2012 was all indecision and waiting, what can we expect in terms of philanthropy for 2013 now that we’ve got some answers and direction on the tax front? No matter what 2013 brings as far as taxes go, or any financial concerns for that matter, you can make the new year a better year by planning now. Call us and we'll help you accomplish your goals. Remember, good planning is no accident.

Idahoans May Benefit From Roth 401(k) Conversion Eligibility Expansion

Does your employer offer a traditional 401(k) retirement plan? If so, you may consider asking if there are plans to also offer the Roth 401(k), and the option of converting a traditional pre-tax plan to a Roth plan. The new American Taxpayer Relief Act (aka Fiscal Cliff Deal) expands eligibility for these conversions. Depending upon your situation, paying the tax now may benefit you in the long-term.

Clearly, Congress is hoping to raise some revenue by allowing these taxable conversions. And while it may seem counter-intuitive to pay the tax now, there are situations in which a 401(k) Roth conversion makes sense. Here’s how it works:  the new rules basically let you convert everything in a traditional 401(k), including pre-tax salary deferrals, at any age, into a Roth 401(k). You pay income tax on the amount you convert. Your new Roth account continues to grow tax free and the eventual distributions also are tax free. According to Forbes, “a Roth conversion makes sense if you expect your tax rate to be the same or higher in retirement and won’t need the funds for a decade or more. It’s also an attractive way to leave an income-tax-free inheritance to your kids or grandkids.”

As with all tax and retirement planning strategies, there are a few caveats:

• Unlike the traditional IRA Roth conversion rules, there is no option to split your tax bill over two years. You will owe the entire tax on whatever amount you convert (remember, Congress is trying to raise some revenue here!).
• Also unlike traditional IRA Roth conversions, you cannot un-do your conversion next year if you change your mind. Your 401(k) conversion is permanent.
• Both the Roth 401(k) plan and the conversion option must be included in your employer’s plan offering for you to take advantage of this strategy.

Forbes has a handy online slide show outlining 10 reasons you might want to convert to a Roth IRA. If any of these fit your situation, be sure to consult with a qualified retirement planning and tax specialist before making a move.

Understanding the complexities of Retirement Accounts is just a part of successful estate planning. To ensure a successful plan, we at Idaho Estate Planning will: 1) educate you and your helpers; 2) take the time to get to know you, your family, your desires, your concerns, your goals, and your potential problems; 3) gladly and patiently answer questions until you understand the concept or issue; and, 4) based on experience with the problems and results caused by poor planning, help you design and implement the plan that fits your concerns and goals. Remember, good planning is no accident.