Living Trust Planning | Estate Planning Attorney

Tag: marsala law firm

  • Navigating the World of Cryptocurrency: A Guide for Parents and Teens

    Navigating the World of Cryptocurrency: A Guide for Parents and Teens

    In an era where digital innovation shapes every aspect of our lives, it’s no surprise that our teenagers are drawn to the allure of cryptocurrency. This digital form of money represents a shift away from traditional financial systems. If you’re the parent of teens, understanding cryptocurrency is crucial so you can provide them with the guidance they need to navigate this new world safely and wisely. I’m here to help you learn what you need to know.

    What is Cryptocurrency, Exactly?

    Cryptocurrency, which folks also call “crypto” is, in essence, virtual money that can be used to buy goods and services. It can also be traded for profit, much like stocks. However, unlike the dollars in your wallet, crypto exists only in the digital world. The crypto universe is vast, with thousands of digital currencies out there.

    Crypto is based on blockchain technology, which ensures transactions are secure, transparent, and decentralized, so they’re not controlled by any government or financial institution (there are pros and cons to this that we’ll describe below). Imagine blockchain as a digital Lego tower where each block represents a piece of information, and once a block is added to the tower, it can’t be removed or altered, making it a super secure way to keep track of cryptocurrency transactions – kind of like a high-tech, unbreakable diary.

    A critical component of understanding cryptocurrency is the concept of a crypto wallet. Unlike a physical wallet, a crypto wallet doesn’t store currency; instead, it holds secure digital keys that allow access to cryptocurrencies.

    What Parents of Teens Need to Know

    To the younger, digital-native generation, cryptocurrency is an exciting and innovative concept. They’re not afraid of technology and investing online. They’re aware of the potentially significant returns on investments, stories of cryptocurrency millionaires, and the prospect of being part of a cutting-edge financial movement. This is why crypto is very attractive to teens.

    Parents should know that while there are no laws specifically prohibiting teens from owning or trading cryptocurrency, most platforms and exchanges require users to be 18 years old. For eager and younger investors, custodial accounts present a solution. These accounts allow parents to oversee their teen’s investments, providing a controlled environment where teens can learn about digital currencies.

    These accounts not only allow parents to monitor their teen’s investment activities but also offer a hands-on educational experience in managing and understanding digital currencies. It’s a balanced approach that combines the practical aspects of investing with the security of parental oversight. And if you’re a business owner, you may want to consider paying your kids and then putting up to $7,000 of what you pay them into a Roth IRA using cryptocurrency and a self-directed IRA structure. By doing this, you can invest that $7,000 in cryptocurrency, and let it ride for the next 50 years. Imagine what it will be worth to them then, and it will grow 100% tax-free.

    For more information about custodial accounts and self-directed IRAs invested in cryptocurrency, schedule a call with us.

    Be Aware of the Risks

    While learning how to invest in crypto can be a great learning activity for you and your teen, be aware of the risks involved. For one, the crypto market is highly volatile. Prices can surge or plummet within a short period, making investments speculative and risky. It’s crucial to have open discussions with your teen about the importance of not investing more than they can afford to lose, and about the reality of the speculative nature of digital currency. Teach your teen the importance of research, diversification, and long-term thinking, and you’ll help instill responsible investment habits that will last a lifetime (and make you proud!).

    Most importantly, ensure you know how to get into their cryptocurrency accounts in case something happens, and that someone knows how to get into your accounts as well. The biggest risk to your cryptocurrency investments is that you haven’t documented them such that someone could access your accounts when something happens to you. Contact us and let us help!

    Alternatives and Best Practices

    For families that find direct investment in cryptocurrency too daunting, there are alternative ways to engage with the digital economy. Encouraging your teen to learn about blockchain technology or exploring investments in crypto-related stocks and ETFs can provide a safer introduction to the concepts without the direct risks associated with cryptocurrency trading.

    However, if you’re ready to make a go at it, here are some best practices to keep in mind:

    Foster a Culture of Learning. The rapid evolution of digital currencies makes continuous learning essential. Encourage your teen (and take the opportunity yourself) to stay informed about the latest developments by reading reputable news sources, listening to podcasts, and even speaking with a financial advisor.

    Establish Guidelines. Before your teen makes any financial investment, it’s important to establish clear guidelines. Discuss together how much time and money is reasonable to invest, the importance of privacy and security in digital transactions, and the expectations for responsible behavior. Setting these ground rules early on can lay a strong foundation for healthy financial habits.

    Embrace the Future. Regardless of whether your teen decides to invest in cryptocurrency, understanding this new facet of the financial world is invaluable for you. The rise of digital currencies offers a unique opportunity for parents and teens to learn together about the future of money, technology, and personal finance. It’s a chance to explore new concepts, discuss values and responsibilities, and prepare for a future where digital currencies may play a significant role.

    Prepare Yourself and Your Teen With Our Guidance

    Whatever the future holds, we believe it’s important to educate your children about finances so you leave a legacy of fiscal responsibility when you’re gone. That’s why we help ensure that when you’re no longer here, your assets – including cryptocurrency – are passed on the way you want, easily, and without your family ending up in court and conflict. We do that by approaching estate planning as a relationship – a lifetime relationship with you as your and your family’s trusted advisor so you have someone to turn to in times of change and uncertainty, and in times of joy and excitement.

    To learn more about how we can guide you and your family to secure the future you want, schedule a complimentary 15-minute call with our office.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

  • April Fools! How DIY Wills and Trusts Offer a False Sense of Security…and May Leave Your Family With an Expensive Mess

    April Fools! How DIY Wills and Trusts Offer a False Sense of Security…and May Leave Your Family With an Expensive Mess

    If you’ve been traveling around the sun for a while, you’ve no doubt heard of a will, a document that says what happens to your money and belongings after you die. You may even have a will, or know you should get one. Maybe you’ve heard of a trust and wondered what it is and how it works. You may have even done research on Google about how to do your own will or trust.

    In fact, it’s hard to poke around the internet and not find do-it-yourself (DIY) wills and trusts services. Legal Zoom, TrustandWill.com, and even media personalities Dave Ramsey and Suze Orman offer cheap DIY documents. You can even create your own will or trust for free by downloading a few forms. What these websites won’t do, however, is explain the potential consequences that can happen if you use one of their services.

    Legal Documents Have Legal Consequences

    The truth is that trusts and wills, and other documents that all adults should have in place, like a health care directive and power of attorney, are legal documents with legal consequences. They contain lots of legal language. Even if you think you understand the words, you likely don’t fully understand the nuances in the terminology. There’s a reason lawyers have to complete college, graduate from law school, then pass a bar exam before they can practice. It takes time and effort to learn the law, the legal terminology, the application of the law, and the potential consequences if something goes wrong.

    Even then, many lawyers who don’t specialize in estate planning, or wills and trusts, put in place legal documents that fail when you become incapacitated or die, for various reasons.  Yet you may be getting sold on the idea that you can draft legal documents online on your own. The promise is that you can save money and completely protect yourself and your loved ones from expensive legal consequences of not having planning in place. Since it’s early April when this article is being published, we call “April Fools” on these services.

    A Real Life Cautionary Tale

    Let’s keep you from being fooled by illustrating what can happen when you draft legal documents on your own without understanding the consequences. What follows is a true story:

    A woman passed away and her husband came into his lawyer’s office to get legal advice on what to do next. The woman (we’ll call her “Jane”) received an inheritance from her first husband (let’s call him “John”). She was also close to her adult children and her grandchildren, and wanted to make sure they received what was left of her inheritance from their father. While she intended to leave her second husband some money, she made it very clear to her family that she wanted to provide for her children and grandchildren.

    Jane was frugal. She didn’t want to spend money on an attorney. So she did some research on Google about wills and trusts, downloaded some forms, and wrote out her own documents. She learned from Google that a trust can keep her family from going through a court process called probate, which would save them money and leave more for them to inherit. So she drafted her own trust thinking that she’d achieve her goals and save money at the same time.

    You may already see where this is going…

    When John’s lawyer read Jane’s DIY trust, they realized that what Jane actually did was leave her entire inheritance to her second husband. Jane legally disinherited her children and grandchildren. Jane’s DIY trust was also subject to laws of a different U.S. state than the one she lived in, meaning that any legal process related to the trust would be more complicated than it needed to be. Surely this was not the result Jane wanted.

    Jane not only disinherited her children, but she failed to transfer her house to the trust, despite drafting and filing a deed on her own, and she left assets out of her trust altogether. So while she thought she was doing the right thing, what she really did was leave her loved ones with a giant, expensive mess.

    Not surprisingly, the family ended up in court and years later, the matter still isn’t resolved.

    You Don’t Have to Make the Same Mistakes

    Jane must have believed what she heard from well-meaning folks like Dave and Suze about doing a will and trust on her own. She probably thought she understood the legal documents she drafted and signed. She most definitely thought she was making things easy for her family and that she was giving her children money from their father. But Jane was fooled. 

    Don’t be Jane. If Jane had worked with us, she would’ve created a plan that would accomplish her goals and keep her family out of court and out of conflict. She would’ve saved her family years of heartache and pain, not to mention the expense. Jane’s story teaches us that it’s absolutely worth it to work with a lawyer whenever you’re dealing with a legal document – including a will or trust. Don’t “trust” those who say you can do it cheaply or do it yourself. Don’t be Jane.

    What to Do Instead

    You owe it to your loved ones to take the time and put in the investment to do your estate planning right, and keep it up over time. In fact, it’s the last and greatest gift you can leave them. Having your affairs buttoned up so they don’t have a mess on their hands and are allowed to process their grief in peace is your final act of love.

    If you want to leave your family the gift of your love, we can help. At our firm, we don’t merely dispense legal counsel or draft documents; we safeguard your family. We look at your specific family dynamics and your goals and then work with you to create a plan that ensures you and your loved ones avoid the stress, conflict, and chaos that comes from DIY documents.

    To learn more about how we approach estate planning from a place of heart so you can leave your family with love, schedule a complimentary 15-minute call with our office.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

  • Parents, Step-Parents, And Children, Oh My! Blended Families + Death = A Potential Nightmare

    Parents, Step-Parents, And Children, Oh My! Blended Families + Death = A Potential Nightmare

    Anyone who’s seen an episode of “Modern Family” knows that families these days come in many different shapes and sizes. Long gone are the days when a “family” was defined as a mother, father, and two children. In this article, we’ll focus on one of the types of families that’s common in our modern culture: the blended family.

    The Unique Dynamics At Play in Blended Families

    A “blended family” comes into being when parents divorce and at least one remarries. While everyone may get along effortlessly while the parent is alive, that too often doesn’t happen once the parent dies. Why? Because the law still hasn’t caught up to our modern definition of “family.” The law often favors the spouse, which works well when the spouse and the deceased have children together. But when the deceased parent has children from another marriage, the children can – indeed, often are – cut out of their inheritance.

    Other than the law being slow to catch up, there are a few more reasons why this happens:

    • The parent trusts the new spouse completely and can’t comprehend the spouse ever doing anything to harm the children;
    • The new spouse may place his or her own interest ahead of the children – or have children from a first marriage and want them to benefit instead; or
    • The parent hasn’t been educated about what could happen when he or she dies, and hasn’t consulted with a competent attorney to get educated.

    A True (and Common) Story That Became a Nightmare

    In a recent marketwatch.com article, a woman wrote about her own nightmare scenario. Her father (we’ll call him “Dad”) owned several properties, including the house she lived in as a child. He remarried, and when his health started to decline, her stepmother (we’ll call her “Stepmom”) made financial moves so he could qualify for government health care benefits under the Medi-Cal program. Whereas Medi-Cal is a needs-based program (meaning you only qualify if you can’t afford to pay), many people with means are able to take advantage of legal maneuvers and set their assets aside so they qualify. Doing this keeps assets protected for the next generation(s).   

    So far, so good. It seems as if Stepmom has the children’s interests at heart, right? Not so fast.

    In order to qualify for Medi-Cal, Dad had to transfer his assets to someone else while he was alive. That “someone else” was Stepmom. Apparently, she convinced Dad it was the right move and that she could be trusted with his properties. Dad eventually died, and so at the time of his death, Stepmom owned all his properties, including the childhood home. Stepmom went on a selling spree, cashing in on them all. Guess where the money went? If you guessed Stepmom and HER daughter, you’d be right. Dad’s children from his first marriage got nothing.

    Wait – Surely That’s Not Legal!

    You may be thinking that’s a horribly unfair outcome – so bad that it has to be illegal. But it’s not. It’s completely legal. Once Stepmom owned the properties, she was free to do anything she wanted with them. She chose – deliberately – to give her stepchildren none of the proceeds and under the law, she had the absolute right to do this. The children had no recourse. They’d lose in court every day of the week.

    So we’re left to wonder: is this the outcome Dad wanted? Could he have foreseen Stepmom was capable of cutting out his children? Did he know there was another way he could have protected them and still qualified for government benefits? With education from a trusted lawyer, would he have done anything differently?

    How to Ensure Your Children Are Spared From the Potential Consequences

    If you want to avoid the same tragic consequences, there are some steps you can take right away:

    1. Don’t Be Afraid of the Inevitable: Benjamin Franklin is quoted as saying, “Nothing is certain but death and taxes,” and he was half right (you can avoid taxes with careful estate planning but that’s a topic for another article). Death is certain. Yet we’re all uncomfortable talking about death, much less planning for it. Accept death as a reality then make plans while you can.

    2. Hold a Family Meeting: Having a heart-to-heart about your wishes, values, and goals can go a long way in preventing misunderstandings after you pass away.

    3. Educate Yourself: Hands down the single most important thing you can do is educate yourself and educate yourself now. Don’t rely on the internet. Laws are different from state to state, families are different, assets are handled in different ways, and the internet won’t take all this into account.

    4. Work With a Lawyer Who Understands Your Family Dynamics: One size doesn’t fit all when it comes to planning for life and death matters like these! What works for one family might not work for yours. You need a tailored plan to fit your unique needs. You deserve, and your family deserves, to have a plan that works when your family needs it. That’s why you need a trusted, heart-centered attorney who will appreciate your unique situation and educate you so you’re empowered to put the right plan in place. Your family’s future literally depends on it.

    Your loved ones don’t have to face tragic circumstances when you pass. With honest conversations, proper education, and guidance from a trusted attorney, you can put together a plan that keeps the peace and makes sure your loved ones are taken care of just the way you want.

    To learn more about how we approach estate planning from the heart and yet with all the strategies you need to keep your assets in the family, schedule a complimentary 15-minute call with our office.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

  • Till Death or Divorce: Why You Need to Plan Now for Your Relationship’s End

    Till Death or Divorce: Why You Need to Plan Now for Your Relationship’s End

    After the excitement of Valentine’s Day fades away and the last indulgence of chocolate is savored, it’s crucial to turn our attention to a topic that may not be as thrilling as the idea of everlasting love: the reality that all relationships come to an end one day. Before you stop reading, hear me out.

    Whether it’s a breakup, divorce, or the death of a loved one after a lifetime together, every relationship eventually will come to an end. The most important thing is how you’ve planned for that ending, or whether you haven’t at all, as your planning (or lack of it) will have a real impact on you, your partner, your children, and your assets.

    The silver lining? While we can’t prevent the end, we can prepare for it with a blend of compassion and strategic planning that makes the end the best possible foundation for a new beginning.

    Understanding the Intersection of Love and Law

    Love is wonderful—joyful moments, shared dreams for the future, and yes, some legal considerations too. For married couples, the law has default provisions in place for what happens to your assets if one of you dies, but those default plans may not align with your personal preferences or the life you’ve built with your partner.

    If you’re an unmarried couple, the absence of a plan could leave you vulnerable, risking the loss of assets or the inability to make crucial decisions about your property or your medical care.

    To better understand how a lack of planning can leave you and your partner out in the rain, let’s look closer at these important areas that are affected when a relationship ends.

    1 | Property Ownership

    Let’s say you and your partner purchase a home and other assets together. Without clear documentation outlining ownership rights, a dispute can arise if the relationship ends in a breakup. But breakups aren’t the only danger.

    If you aren’t married and one of you passes away, the other partner might find themselves without a rightful claim to the property, potentially facing homelessness or a significant financial loss.

    If you own any property with anyone else or if you want to ensure your property lands in the hands you choose in the event of your death, contact us to plan for that property now.

    2 | Healthcare Decisions

    In the unfortunate event of a medical emergency where one partner becomes incapacitated, lacking appropriate legal documentation could impede the other partner’s ability to make critical healthcare decisions on their behalf. This can lead to delays in medical treatment or disagreements among family members over the person’s treatment, causing unnecessary stress and complications during an already challenging time.

    3 | Guardianship for Children

    For couples with children, failing to establish guardianship arrangements in the event of both parents’ incapacity or death can have devastating consequences. Without a designated guardian, children may be placed in the care of individuals who may not align with your wishes or values, leading to potential custody battles and emotional upheaval for the children and your extended family.

    If you and your partner end your relationship without coming to a mutual agreement on a guardian for your children, things could get even more chaotic – especially if one of you has documented your desired guardian and the other partner hasn’t.

    Worst of all, typical wills don’t cover planning for the needs of minor children sufficiently. It’s why we offer the Kids Protection Plan, specifically designed to ensure your children are never raised by anyone other than people you know, love, and trust, and are never taken from your home and into the care of strangers.

    4 | Business Interests

    If you and your partner share business interests or investments, the lack of a solid plan could jeopardize the future of these assets. Without clear instructions, the surviving partner may face challenges in managing or transferring ownership of these assets, potentially leading to financial instability or the dissolution of the business.

    Be Proactive, No Matter What the Future Holds

    In each of the scenarios above, the absence of proactive estate planning measures leaves individuals vulnerable to legal and financial uncertainties. By taking proactive steps that consider what will happen when your relationship ends, couples can safeguard their assets, ensure their wishes are honored, and provide peace of mind for themselves and their loved ones.

    Not sure how to start the conversation with your partner?

    Start by explaining to your partner your desire to safeguard the life you’re building together. Just as relationships evolve over time, your wishes and how they’re documented should too. Continuously engaging in dialogue and revisiting your plans ensures they remain aligned with your evolving needs and aspirations.

    Let Us Make It Easy to Plan Ahead

    Whether you’ve already started the conversation with your partner or need more guidance, planning for the future of your relationship can feel overwhelming. We can help.

    At our firm, we don’t merely dispense legal counsel; we safeguard your love story. We comprehend the profound significance of your relationship and are dedicated to ensuring its protection. Whenever (and however) your relationship ends, we’ll work with you to create a plan that considers these contingencies ahead of time so you and your loved ones can avoid the stress, conflict, and chaos that comes with incomplete planning.

    To learn more about how we approach estate planning from a place of heart, schedule a complimentary 15-minute call with our office.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

  • 3 Estate Planning Documents Your Parents Need Right Now

    3 Estate Planning Documents Your Parents Need Right Now

    Today we’re diving into a topic that’s absolutely crucial: estate planning for your parents. As they gracefully navigate their golden years, ensuring their peace of mind (and yours!) becomes a top priority. Whether they raised you the way you want, or showed you how you want to do it differently, as your parents age, one of the very best things you can do for your own best future, and that of your entire future lineage – your children, grandchildren, and beyond – is to take great care of the people you were born to or raised by.

    The questions you need to start asking now are: How will you help them if they become ill or injured? Who will take care of their bills and make sure their health needs are met? How do they want to be cared for, if and when they cannot care for themselves?

    The starting place is open conversation and a power trio of estate planning tools: the general power of attorney, the power of attorney for healthcare (including a living will), and the HIPAA waiver.

    Let’s break down why these tools are the unsung heroes of comprehensive estate planning for your parents, and how to bring them up so you can support your parents to get them created or updated, no matter how much or how little money they have in the bank.

    1. General Power of Attorney (POA)

    A general power of attorney (or POA)  grants a person you name (often a family member or trusted friend) the authority to manage your financial affairs if you become unable to do so yourself. From handling bills to making investment decisions, the general POA ensures that your financial matters are handled, whether you’re experiencing a temporary illness or a long-term inability to manage your money, such as in the case of memory problems.

    If your parents have assets that you must be able to access easily in the event of their incapacity, you may decide that a POA for accessing their accounts isn’t sufficient, as it can be difficult to get access to bank accounts even with a POA in place and will require court action. In that case, the best course of action is to ensure that their assets are titled in the name of a trust, with you or someone you trust as the named successor trustee, who can step in and handle financial matters for your parents, without any court involvement, when needed.

    2. Power of Attorney for Healthcare and Living Will

    It’s possible your parents already lean on you for guidance with their healthcare decisions, and it’s equally possible they don’t share details of their healthcare with you at all. No matter which side of the spectrum your parents stand on, the question of what will happen to their healthcare needs if they become seriously ill can feel overwhelming —  and trust me, it’s even more overwhelming during moments of medical crisis.

    Thankfully, a power of attorney for healthcare and living will allow your parents to explain their medical wishes to guide medical providers and family members on what treatments and life-saving measures they’d like to have, even in the toughest of times.

    The power of attorney for healthcare designates someone to make these medical decisions on behalf of your parents if they’re unable to do so. This trusted individual becomes the advocate, ensuring that healthcare choices align with your parents’ values and preferences.

    Meanwhile, the living will – also known as a declaration to physicians – outlines your parents’ wishes regarding life-sustaining treatments in the event they’re unable to communicate. From CPR to artificial hydration, this document provides clarity amidst uncertainty, giving both your parents and their loved ones peace of mind that the decisions being made around their care are what they themselves would want.

    3. HIPAA Waiver

    In the digital age, privacy is paramount – but what happens when privacy becomes a barrier to essential healthcare-related communication? Enter the HIPAA waiver, the ultimate tool for opening communication roadblocks in times of need.

    HIPAA (the Health Insurance Portability and Accountability Act) protects the privacy of individuals’ medical records. While this is crucial for safeguarding sensitive medical information, it can sometimes hinder the flow of communication between healthcare providers and family members, especially for the elderly and those incapacitated by an illness or injury.

    By signing a HIPAA waiver, your parents authorize specific individuals to access their medical information and speak directly to their medical providers, ensuring seamless communication and informed decision-making. This is essential in medical emergencies but is also extremely helpful if your parents need help hearing their doctor or understanding their medical advice.

    How to Bring Up Estate Planning With Your Parents

    The best way to bring up estate planning with your parents is to get your own planning handled first. Then let your parents know that in the process of handling your own planning, your lawyer raised the question of whether you were an agent under anyone else’s power of attorney, or named as a successor trustee in your parents’ trust, or if you’re going to be caring for aging parents at some point.

    If you’ve worked with a lawyer and they didn’t ask you those questions, give us a call and let’s review your plan and your parents’ planning to make sure that everything you’ll need is dialed in. This can all get quite messy very quickly, and now is the time to talk with your parents.

    Why the Urgency?

    You might be thinking, “Why the rush? Can’t we tackle this later?” Here’s the scoop: Life is unpredictable, and procrastination can be a costly gamble. Waiting until a crisis strikes to get these tools in place can lead to a whirlwind of legal and emotional chaos, leaving your parents’ wishes unfulfilled and their affairs in disarray.

    By proactively planning ahead, you’re not just checking items off a to-do list – you’re investing in your parents’ peace of mind and yours.

    Don’t wait for a storm to hit – schedule a 15-minute call today to learn how our unique Life & Legacy Planning process is designed with your family’s well-being in mind, offering personalized guidance and support every step of the way.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

  • 14 Ways to Show Your Finances Some Love This Year – Part 2

    14 Ways to Show Your Finances Some Love This Year – Part 2

    Last week we explored 7 ways to show your finances and your family some love with smart, tax-advantaged financial tips for the new year:

    1. Make a Qualified Charitable Distribution (QCD)
    2. Front-load Your 401(k) Contributions
    3. Set Up an IRA for a Child
    4. Make Donations During Spring Cleaning
    5. Give the Gift of Appreciated Stock Shares
    6. Establish a 529 College Plan
    7. Make a Roth Conversion

    This week, we’re continuing the financial love with 7 more tips you can use to benefit your family this month and the year ahead.

    8 | Spread The Love With The Annual Gift Exclusion

    Don’t underestimate the power of spreading love through financial generosity. Did you know you can gift up to $18,000 per person to an unlimited number of people each year? This allows you to share your wealth with family and friends in a tax-efficient manner. These gifts not only escape taxation but also foster stronger connections and deepen relationships with your loved ones. Whether it’s helping with educational expenses, supporting a dream vacation, or simply offering a helping hand, annual exclusion gifts embody the spirit of giving and strengthen the bonds that matter most. With the sunset of the estate tax exemption set to occur in 2025, now is the time to make gifts if you have a taxable estate. Contact us to discuss options as there are far better ways to gift than outright.

    9 | Use Up Your Lifetime Gift Tax Exemption

    Use up your lifetime gift tax exemption: It’s not just about securing your own financial future but also about ensuring your loved ones thrive. By leveraging your lifetime gift tax exemption, currently standing at $13.61 million per person, you can minimize estate taxes and provide a significant financial boost to your heirs during your lifetime. Whether it’s funding education, helping with a down payment on a home, or simply offering financial support, using this exemption allows you to share your wealth and make a lasting impact on those you cherish most. The exemption is set to sunset in 2025, so if your estate is greater than $5M, now is the time to plan. Contact us ASAP, as this planning does take time.

    10 | Allocate More Funds To The Generation-Skipping Tax Exemption

    As you plan for the future, it’s essential to consider the next generation. By allocating additional funds towards your generation-skipping transfer tax exemption (of up to $13M), you provide a seamless transfer of assets to your grandchildren or future beneficiaries. This strategic move not only minimizes tax implications but also lays the groundwork for preserving your family’s wealth for generations to come.

    11 | Make an Extra Mortgage Payment

    Your home is more than just a place to live—it’s also a valuable asset that can offer tax advantages. By making an extra mortgage payment on your primary home loan, you can increase your mortgage interest deductions on your tax return. Not only does this reduce your taxable income, but it also accelerates your path to homeownership, saving you money in the long run.

    12 | Complete Repairs on Rental Property

    Investing in your rental property not only enhances its value but also offers tax benefits. By completing repairs on your rental property, you can offset rental income on your tax return while providing a better living environment for your tenants. It’s a win-win situation that improves your property’s profitability and strengthens your relationship with your renters.

    13 | Create a Lifetime Asset Protection Trust

    Planning for the unexpected is an act of love towards your spouse and children, and when you know the right tools to use (like we do) you can make sure your family is provided for and protected for generations to come. One of my favorite ways to do this is using a lifetime asset protection trust. This tool allows you to protect the assets you leave for your children from any future financial trouble, like lawsuits or divorces.

    14 | Create Your Estate Plan

    Finally, don’t overlook the importance of estate planning in showing love to your family. By finalizing your will, revocable trust, power of attorney, and advance medical directive, you ensure that your wishes are carried out and your loved ones are protected in the event of incapacity or death. It’s a vital step towards providing peace of mind for you and your family, allowing you to focus on enjoying life’s precious moments together. Remember, a plan is more than a set of documents. It’s a lifetime of wise decisions about your life and legacy.

    Show Your Love Where It Matters Most

    The month of love might be over, but it’s never too late to make loving financial and planning decisions for your loved ones – and yourself!

    We know the value of planning for the future. We also know the value of planning for the life you want today and the legacy that extends far beyond your assets.  

    Schedule a complimentary 15-minute call to learn how we can help you create a Life & Legacy Plan that will take care of everyone and everything you love.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

  • 14 Ways to Show Your Finances Some Love This Year – Part 1

    14 Ways to Show Your Finances Some Love This Year – Part 1

    Ah, February – the month of love, where hearts flutter and chocolates abound. But amidst the romantic whirlwind, there’s a different kind of love that deserves our attention: the love we show ourselves and our family through thoughtful financial planning.

    Now I know what you’re thinking – that doesn’t sound as fun or showy as a fancy night out or a bouquet of flowers (or a night in with Netflix). But trust me, making smart planning decisions with your assets is one of the best gifts you can give – and a gift that keeps giving over time.

    This week, we explore seven tax planning tips that not only secure your financial future but also spread love and prosperity to those you cherish most.

    1 | Make a Qualified Charitable Distribution (QCD)

    Want to spread love to a charity you’re passionate about? Is your retirement account looking good? Consider making a qualified charitable distribution from your account directly to charity. Not only does this fulfill your required minimum distributions, but it also exempts the amount from your taxable income. By giving back to causes close to your heart, you can make a meaningful impact while reducing your tax burden.

    2 | Front-load your 401(k) contributions

    Show love to your future self by maximizing your 401(k) contributions early in the year as opposed to spreading them out evenly over 12 months. By reaching the 2024 limits of $23,000 sooner, your investments will have more time to grow, potentially enhancing your retirement nest egg even more. It’s a proactive step toward securing financial stability for yourself and your family down the road.

    3 | Set Up an IRA for a Child

    Want to inspire financial skills in your kids while getting a tax advantage? Teach the next generation the value of financial planning and responsibility by setting up and contributing to an IRA for a child with earned income. Whether it’s from babysitting or odd jobs, every dollar invested grows tax-free, providing a solid foundation for their future financial well-being.

    4 | Make Donations During Spring Cleaning

    Ah, the annual ritual of spring cleaning. This year, let’s infuse this mundane task with a dose of love and generosity. As you sift through your belongings, consider the items that no longer serve you but could bring joy to others. From gently used household furnishings to clothing and books, each item holds the potential to make a difference in someone’s life.

    Here’s the cherry on top: for items in good condition, you may claim a charitable deduction on your 2024 income tax return, making your act of kindness even sweeter. So as you purge the old and welcome the new, keep receipts of your donations – it may add up to some real tax savings.

    5 | Give the Gift of Appreciated Stock Shares

    Strengthen familial bonds while supporting charitable causes by giving appreciated securities and stock shares directly to your sibling’s favorite charity. By donating your appreciated stock instead of selling it, you can potentially avoid recognizing the gain as your income, maximizing the impact of your charitable giving while minimizing your tax liability.

    6 | Establish a 529 College Plan

    Invest in the educational future of your loved ones by setting up a 529 plan. While the contributions you make to a 529 account aren’t tax deductible, contributions to these plans grow tax-free and can be withdrawn tax-free when used by your loved one for qualified education expenses like housing, books, tuition, and more. Whether it’s for your child, grandchild, niece, nephew, or another family member, a 529 plan is a gift that keeps on giving.

    7 | Roth Conversion

    Show love to your retirement savings by considering a Roth conversion on a traditional IRA. If your traditional IRA has declined in value, now is the ideal time to convert it to a tax-saving Roth. Doing so can reduce your income tax liability later on and let you potentially enjoy tax-free withdrawals in retirement. It’s a strategic move that can optimize your retirement income while minimizing tax obligations.

    Let Us Help You Show Your Finances Some Love

    February offers a perfect opportunity to demonstrate love not only through romantic gestures but also through practical Life & Legacy Planning. By incorporating these tax planning tips into your overall planning strategy, you can secure a brighter future for yourself and your loved ones while making a positive impact on your community.

    We’re here to guide you through every step of your planning journey, from taking inventory of what you have and what’s important to you, to the practical steps of how to plan for the life and legacy you dream of.

     Schedule a complimentary 15-minute call with our office today to learn more.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

  • Think Your Kids Will Automatically Be Cared For In the Way You Want? They Might Not Be Unless You Do This

    Think Your Kids Will Automatically Be Cared For In the Way You Want? They Might Not Be Unless You Do This

    As parents, we’re hardwired to prioritize our children’s well-being above all else. We work tirelessly to provide for them, nurture them, and ensure they have every opportunity to thrive. Yet amidst the hustle and bustle of daily life, it’s easy to overlook a crucial aspect of their future: what happens to them if we’re no longer here to care for them?

    It’s a sobering thought, but one that deserves your attention. You may assume that in the event of your untimely passing, your children will automatically be cared for and inherit your assets. However, the reality is far more complex and potentially unsettling.

    Let’s unpack why relying on these assumptions could leave your children’s future in uncertain hands.

    The Myth of Automatic Care

    Yes, it’s true that your children will inherit your assets upon your passing. However, without advance planning, the management of those assets will fall into the hands of a court-appointed trustee. This is an expensive proposition for the people you love most, and worse, the trustee may not necessarily align with your values or financial philosophy, leaving your hard-earned assets vulnerable to mismanagement.

    On top of that, and maybe worst of all, under current laws, once your child reaches the age of 18, they gain unfettered access to their inheritance. While you may have envisioned these assets providing a foundation for their future endeavors, the reality is that many 18-year-olds lack the financial maturity to handle such responsibility. From impulsive spending to falling prey to financial scams, the risks are significant.

    The Importance of a Kids Protection Plan

    What’s the solution? Enter the Kids Protection Plan—a comprehensive legal planning system designed to safeguard your children’s well-being and financial future in the event of your incapacity or passing.

    A Kids Protection Plan empowers you to designate a trusted guardian who will step in to care for your children if you’re unable to do so. This ensures your children will be in the loving care of someone you know and trust, rather than leaving their fate to the discretion of a judge who may lack intimate knowledge of your family dynamics.

    Moreover, a complete Kids Protection Plan goes beyond long-term guardianship appointments. It includes a detailed roadmap for the management of your assets on behalf of your children, specifying how funds should be allocated for their upbringing, education, and other needs. By setting clear guidelines, you mitigate the risk of financial mismanagement and ensure that your children’s inheritance serves its intended purpose: supporting their growth and development.

    Leave Behind Detailed Instructions

    Naming legal guardians is just the first step. Your Kids Protection Plan won’t do much good if the people named in it aren’t aware of your plan or your wishes. You want to make sure your children’s guardians know your desires for their upbringing. Some things to include might be:

    • Faith and religious practices
    • Philosophy on education and where you’d want them to go to school
    • Activities you’d want your children involved in
    • Nutrition, medical care, or any other health considerations

    I make sure that everyone named in your plan is informed of what to do if the unthinkable happens to you. If you’re working with me, I’ll be there to guide them each step of the way. 

    Planning for the Future

    We understand the gravity of planning for your children’s future. That’s why we offer personalized Life & Legacy Planning Sessions designed to consider your family dynamics and assets, and then help you choose the right planning package and fees to safeguard and protect what matters to you most.

    Whether you’re a new parent or revisiting your estate plan, our team is here to provide the guidance and expertise you need to secure your family’s future for generations to come. Schedule a complimentary 15-minute call to learn more about our unique Life & Legacy Planning process. During your complimentary 15-minute call, we’ll explore your current arrangements and identify any gaps that may leave your children vulnerable.

    Don’t leave your children’s future to chance. Take the first step toward peace of mind and lasting security. After all, your children deserve nothing less than the assurance that they’ll be cared for and cherished, no matter what the future holds.

    Schedule a complimentary 15-minute call to get started.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session.

  • This New Law Makes It Easier to Save for Retirement and Pay Off School Loans At The Same Time

    This New Law Makes It Easier to Save for Retirement and Pay Off School Loans At The Same Time

    Navigating your financial journey with the heavy burden of student loan debt on your back can feel overwhelming. You’re faced with a critical decision: should you prioritize paying down those loans, or should you focus on the future, contributing to your workplace retirement plan? It’s a tough call, especially when choosing loan payments means missing out on the opportunity to grow your savings through employer retirement matches.

    But there’s good news on the horizon, thanks to the SECURE 2.0 Act. This groundbreaking legislation is here to offer a helping hand, allowing your student loan payments to qualify for employer retirement matching contributions. It’s a win-win, enabling you to tackle your debt while also building your nest egg.

    Are you wondering if this financial boost applies to you? Keep reading, because we’re about to explore how the SECURE 2.0 Act could be the solution you’ve been searching for.

    What The SECURE 2.0 Act Means for The Student Loan Dilemma

    For many of us, juggling student loan debt is a bit like trying to balance a coffee cup on a stack of books—tricky and maybe a bit messy, especially when we’re also trying to save for retirement. Those monthly loan payments can take a big bite out of our budgets, making it hard to stash away cash for our future selves. When we skip on contributing to our retirement plans, it’s like missing out on the whipped cream in our favorite latte—those employer retirement matches that could seriously boost our savings.

    Enter the SECURE 2.0 Act, ready to smooth out this balancing act. This new legislation suggests to employers a clever workaround: treating your student loan payments as if they were direct deposits into your retirement savings account.

    This shift is subtly brilliant. It means the money you’re dedicating to student loans can now help you unlock those employer retirement contributions, offering a streamlined path to beef up your retirement savings. It’s a bit like finding a shortcut on your daily commute that makes life just a little easier and a lot more rewarding. Let’s explore how this can help secure your financial future.

    How It Works

    The SECURE 2.0 Act is like a breath of fresh air for employees weighed down by student loan payments. It gives employers the green light to get creative with retirement benefits, turning those hefty student loan payments into a force for good in your retirement savings plan. By treating these payments as if they were contributions to your retirement account, employers can now match them, just like they would with traditional retirement contributions. Imagine that—your student loan payments not only help you chip away at your debt but also build your nest egg, without you having to put extra money into your retirement account.

    This twist means you can keep focusing on paying down your student loans without missing out on the magic of compounding interest in your employer-sponsored retirement account. It’s a game-changer for anyone who’s felt stuck between a rock and a hard place, trying to decide between paying off debt and saving for the future.

    However, there’s a catch. Not every employer will automatically jump on this bandwagon. The SECURE 2.0 Act opens the door, but it’s up to individual companies to walk through it. This means the availability of this perk will vary from one employer to the next.

    So what’s your next move? Start a conversation with your employer to see if they’re planning to offer this innovative benefit starting in 2024. It’s an opportunity too good to miss for anyone looking to make their student loan payments do double duty.

    Helping You Navigate Towards Financial Wellness

    If you’re one of the many people grappling with student loan debt, the SECURE 2.0 Act offers a ray of hope. Now individuals can navigate the intricate landscape of student loan relief without sacrificing their long-term retirement goals. As employers have the option to align student loan payments with retirement savings, employees can effectively manage their finances and work towards a more stable financial future.

    No longer bound by the dilemma of choosing between student loan payments and retirement contributions, individuals who qualify for the benefit can strategically plan their finances for a brighter future. 

    Want to take control of your financial future and that of the ones you love most? Then I invite you to meet with us for a Life & Legacy Planning Session. During the session, we look at everything you own and everyone you love to determine whether your assets and your loved ones will be cared for exactly as you want if you die or become incapacitated. If the way things are currently set up doesn’t serve you, your assets, or your family exactly as you want, we can help you develop a Life & Legacy Plan that will protect everything you love for generations to come. 

    Schedule a complimentary 15-minute call to get started.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.

  • Want to Show Your Partner How Much You Love Them? Put Them In Your Will

    Want to Show Your Partner How Much You Love Them? Put Them In Your Will

    Love is undoubtedly the most profound and cherished thread that weaves us all together, and there are many different ways to express our love to the people who mean the most to us. Often when we think of showing our love, we think of bouquets of flowers, surprise gifts, and meaningful notes. But an often overlooked – and incredibly meaningful – way of showing your love is to put that love into a plan for the future. 

    While estate planning may seem like a realm of financial jargon and legalities, it is, at its core, a tangible expression of your care for those closest to you (that’s why I refer to estate planning as Life & Legacy Planning).

    In this blog, we’ll look at why adding your partner to your will and estate plan as a whole isn’t just a romantic gesture but the ultimate act of love.

    Providing Care and Protection

    Estate planning is typically associated with financial matters and legal technicalities, but at its core, it’s an expression of love for those we hold dear. It’s about not leaving a mess for the people you love. It’s about providing comfort and security to your loved ones long after you’re gone. And when you include your partner in your estate plan, you’re solidifying the foundation of your love and commitment, ensuring they’re cared for when you can no longer be there in person.

    One of the most tangible ways to demonstrate your love is by securing your partner’s legal and financial future through thoughtful estate planning, but not just any old estate planning — in our book, it needs to be “Life & Legacy Planning” so you know you have a “plan that works to keep your family out of court and out of conflict.”

    While a will, trust, and other estate planning documents are valuable, if they’re not properly counseled, regularly updated, and combined with additional planning tools such as a Kids Protection Plan, if you have minor children, and a Family Wealth Inventory plus Legacy Interviews to capture your tangible and non-tangible assets, your loved ones could be left with an expensive mess.

    If you’re married, your spouse already has some rights in the event of your incapacity or death, but that doesn’t mean they have automatic access to your accounts, or even to make your health care decisions for you the way you would want. If you’re not married, your unmarried partner or partners would have no rights to anything in the event of your death or incapacity. Truly the greatest gift you can give your beloved is a Life & Legacy Plan.

    Avoiding Legal Complications

    Love conquers many things, but we have to acknowledge that legal matters often require a bit more than just sentiment. Without a well-counseled, prepared, and updated Life & Legacy Plan, your partner might find themselves entangled in legal complications when it comes to inheriting assets if something happens to you. In fact, if you and your partner aren’t married, they won’t inherit anything at all!

    That’s because the law that controls what happens to your assets if you die without a plan is written with married couples in mind. That means that anyone you love who isn’t married to you or directly related to you through blood will be left with nothing when you die or if you become incapacitated, unless you plan in advance. 

    By including your partner in your will and overall Life & Legacy Plan, you get to ensure they’ll receive what you would want them to in the event of your loss and spare them the stress of navigating legal intricacies during an already emotionally trying time.

    Protecting The Life You Built Together

    Maybe the institution of marriage isn’t your thing or you and your partner are putting off marriage plans for the time being. Nonetheless, having a plan in place isn’t something you want to put off until you’re older. Chances are good that you’ve already begun to build a life together that’s worth protecting.

    Whether it’s the charming house you turned into a home or the vintage car you spent countless road trips in, shared assets are more than just possessions – they’re a part of your shared history. Including your partner in your estate plan ensures that these shared treasures are passed on smoothly, preserving the memories you built together.

    If you have children with your partner, Life & Legacy Planning takes on an even greater significance. If your partner isn’t biologically related to your children and hasn’t legally adopted them, there’s no legal guarantee that your partner would be able to care for your children or even visit them if something happens to you.

    Creating a Kids Protection Plan for your kids in your estate plan is an act of profound love and responsibility. By ensuring your partner has legal authority in matters of your children’s well-being, you’re displaying a commitment to everyone’s future happiness and security.

    Helping You Show The One You Love Just How Much You Care

    Love binds us together – but proper estate planning, and specifically Life & Legacy Planning, puts the love you have for your partner and your family into action. It’s not just about assets and legalities; it’s a declaration of your commitment and a promise to provide for your loved one even when you’re no longer physically present. 

    After all, in matters of the heart, there’s no gesture more profound than securing a future together.

    If you want to show your partner just how much you love them, contact us today to learn more about our Life & Legacy Planning process to get started. 

    Schedule a complimentary 15-minute call with us.

    This article is a service of Jeannette Marsala, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge.

>