PETS: Estate Planning for Companion Animals

Whether you call them pets or companion animals, they play an important part in the lives of many people. Frequently owners of companion animals want to arrange for the financial support and care of their animals if they become unable to personally provide for that care. Estate planning provisions that provide for companion animals that outlive us can be included in your will or trust agreement. Also existing estate planning documents can be amended to add these provisions.

A durable power of attorney or the dispositive provisions of a revocable living trust also can be used to ensure that companion animals will be properly cared for if the owner becomes disabled or until the long-term plan takes effect.

For more information contact Robert A. Gordon.

What happens when someone dies at home

Many people are unfamiliar with what must be done following a death. We hope that this information will help to answer your questions about various procedures which must be followed.

The functions of the Coroner's Department

When a hospital, doctor or individual advises the Coroner's department of a death, the department will contact the police, who will in turn arrange for the transport of the deceased to the main mortuary. A report is then prepared by the Police for the Coroner. Then the Coroner seeks to establish the cause of death either by contacting the deceased's doctor or by requesting an autopsy. Another function of the Coroner's court is to establish the identity of the deceased person through formal identification. Although this can be done by anyone who knows the deceased, it is necessary that the person making the identification knows the correct spelling of the deceased's name, their age, address and occupation.

When a person dies at home.

If a person dies at home, the first telephone call should be to a doctor. If the person has been treated recently by that doctor, and the doctor is positively able to identify the cause of death, he or she will normally be able to issue a Medical certificate of Death. The next call should be to your funeral director. Your funeral director will take immediate steps to transfer the deceased person to the mortuary and will arrange the registration of death. The funeral director will then take care of all the subsequent funeral arrangements.

When a person dies in hospital

If a person has died in hospital, the attending doctor should be able to sign a Medical certificate of death. Again, once the Medical Certificate of Death. has been signed your funeral director can arrange for transport of the deceased, the registration of death and subsequent funeral arrangements.

When death occurs interstate or overseas

If a person dies interstate or overseas, your funeral director should be notified immediately. he or she should be able to arrange transport of the deceased, and attend to any statutory or customs requirements.

When death is accidental or sudden.

Should a person in apparently good health and not under the care of a doctor die suddenly or as a result of an accident, it is necessary to notify the Coroner.

Where will the Deceased's personal belongings be held?

If death occurred after admission to hospital, the hospital is responsible for personal items. Otherwise any valuables or personal effects will be removed during admission to the mortuary and then placed in safe custody by police officers. If you have a query contact Coronial Counselling Service

Where can I obtain a copy of the Registration of Death ?

The County Recorder's Office upon application, provide you with a certified copy of Death Registration. Prior to the cause of death being registered, an interim certificate can be obtained, which in some circumstances may be used for processing legal documents.

Will the Post Mortem examination interfere with the Funeral Arrangements?

A post mortem examination does not usually delay funeral preparations. However, if organs must be retained for analysis you may want to take this into account when deciding on the day of the funeral. Your funeral director will contact the Coroner's Office to determine the earliest date for release of the deceased.

Can I have a copy of the Post Mortem report?

A Copy of the post mortem report can be sent to your personal doctor for him or her to explain to you in detail the medical cause of death.Your request for such a report should be in writing and forwarded to the Coroner's Office giving the name and address of the doctor and details of the deceased

Can I see the Deceased?

Apart from the formal identification which is arranged by police officers, it is suggested that the viewing of the deceased be arranged with the Funeral Director.

www.robertgordonlaw.com

www.hanfordhouse.com

The Wrong Way to Leave Money to Heirs?

This is an interesting perspective on incentive trust in the WSJ.

The Wealth Report

Robert Frank looks at the lives and culture of the wealthy.

Rich parents are always grappling with how to leave money to their children. Beyond the obvious questions — How much is enough? How much is too much? — they wonder whether the money should come with strings attached or just be given to their kids outright.

Inheritances that have strings attached are known as incentive trusts. They might stipulate that a kid can’t have access to his $10 million until he graduates from college or gets a job. Or they might say that the heir gets cut off if he or she is caught with drugs or abuses alcohol. Some are values-based, saying that an heir has to live up to the broader values of the patriarch in order to get the money.

In a survey out today, PNC says that 30 percent of high-net-worth individuals use incentive trusts. At the same time, 62 percent say their kids and grandkids should take responsibility for creating their own wealth.

Martyn Babitz, a senior vice president of PNC Wealth Management, says more families should use incentive trusts. (Not coincidentally, PNC can help you create one!) “When it comes to leaving a legacy, too few individuals are taking the steps to ensure their heirs do not have unfettered access to their money,” he says.

In other words, money can become a shaper of character, acting as an incentive for heirs to become normal, productive members of society.

To my mind, however, incentive trusts are something of an oxymoron: You leave your kid a fortune, but attach conditions designed to mitigate the impacts of that fortune. It’s a bit like giving someone a lifetime supply of Haggen Dazs, but saying that they can only eat it if they agree to diet and lose weight. And if the conditions are values-based, then the parents are using money to impose their views and principles on their kids — another effective way of robbing them of their own identity.

So here’s my advice: If you really want to mitigate the effects of large fortunes on your kids, don’t leave them a large fortune. Let them find their own careers and success, rather than using money to dictate from the grave.

Make Sure Your Trust is Properly Funded

Funding the Trust

For the revocable trust to be effective in eliminating probate, it is essential that all family assets be transferred into the trust prior to a spouse’s death. Any property that has not been transferred into the trust will be subject to probate, defeating the purpose of creating it in the first place. An amazing number of people go to the trouble and expense of forming a revocable trust and then fail to complete the work necessary to fund it.

Funding the trust involves transferring legal title from husband and wife into the name of the trust. For example, if Harry and Martha Jones are funding their revocable trust, they will change title to their assets from "Harry Jones and Martha Jones, husband and wife" to "Harry Jones and Martha Jones as Trustees of the Jones Family Trust, Dated January 1, 1999."

For real estate, the change in title is accomplished by executing and recording a deed to the property. Bank accounts and brokerage accounts can be transferred by simply changing the name on the accounts to reflect the trust as the new owner. Shares of stock and bonds in registered form are changed by notifying the transfer agent for the issuing company and requesting that the certificates be reissued in the name of the trust. Stock in a family owned corporation can be changed by endorsing the old stock certificate to the trust and having the corporation issue a new certificate to the trust. Other types of property can be transferred by a simple written declaration called an Assignment.

The living trust also can be funded indirectly by transferring interests in other entities. For example, if you hold your property in a Family Limited Partnership or Limited Liability Company, the living trust can hold your shares in those companies.

Tracking

Life Insurance and Estate Planning

Life Insurance and Estate Planning

Many people aren't aware that all of the proceeds from life insurance policies that they own at death will be included their estate for estate tax purposes. This is because if the policy owner can withdraw the cash value and change the beneficiary, then the policy owner will be deemed to have incidents of ownership over the proceeds and the IRS and, if applicable, state taxing authorities, can then tax the proceeds at death.

Thus, if you own a $1,000,000 term life insurance policy at the time of your death, then the insurance proceeds will already use up your $1,000,000 exemption from federal estate taxes (In the year 2011).

How an Irrevocable Life Insurance Trust Works

One way to avoid the taxing of life insurance proceeds at death is to establish an Irrevocable Life Insurance Trust, or ILIT for short.

An ILIT is a type of irrevocable trust that is specifically designed to hold and own life insurance policies. Once the ILIT has been set up, you will transfer ownership of your life insurance policies to the Trustee of the ILIT. While you can't be a Trustee of the ILIT - otherwise you'll be deemed to have incidents of ownership in the life insurance - your spouse and/or children can be Trustees.

Once you've transferred ownership of the life insurance to the Trustee of the ILIT, you will have given up all of your incidents of ownership over the policies. Since you'll no longer own the policies, the proceeds can't be taxed in your estate when you die.

Who Are the Beneficiaries of an ILIT?

The ILIT will also be designated as the primary beneficiary of your life insurance policies. Thus, after you die, the insurance proceeds will be deposited into the ILIT and held in trust for the benefit of your spouse during his or her remaining lifetime, and then the balance will pass to your children or other beneficiaries. Aside from this, the ILIT can provide your family with a quick source of cash to pay your estate tax bill while at the same time not increase your overall estate tax burden.

Another benefit of the ILIT is that since the insurance proceeds will be held in trust for the benefit of your spouse instead of going directly to your spouse, the proceeds can't be taxed in your spouse's estate either.

http://wills.about.com/od/overviewoftrusts/a/ILITs.htm

Insurance Company Settlement Negotiations

Insurance Company Settlement Negotiations

When negotiating with an insurance company over the value of a claim, the key is to be patient. It is in the insurance company's best interest to settle the claim right away to before the value of your injuries increases. Do not begin settlement discussions before you have fully treated your injuries.