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Law Offices of Steven M. Adler, PLLC |
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Adler Law
E-Newsletter
February 24, 2014
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390 N. Broadway, Suite 200
Jericho, New York 11753
Phone: (516) 876-1105
Fax: (516) 441-5095
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Welcome to the March 19th Issue of the Adler Law E-Newsletter.
Who really wants to think about their own mortality and contemplate what life will be like for their families after their own death or if they were to be incapacitated? Understandably, it is an uncomfortable topic.
In this issue of the Adler Law Newsletter, we address how being prepared can prevent heartache and financial distress for loved ones and heirs.
Dividing assets among loved ones is also another difficult topic. The easiest way to avoid conflicts and hurt feelings is to give an equal amount to each of the children and/or other loved ones. Equality may avoid conflicts and complaints but it does not necessarily mean fairness. Fairness requires some thought and forces you to take into account the particular circumstances of each individual, even at the risk of creating conflict. Our second article discusses some of these issues.
Although these articles focus on difficult issues, we hope that you find them helpful. Just to show we're not serious all the time we end our newsletter with a light-hearted joke...and we hope you'll find it funny.
If you have any questions or would like us to discuss a subject of interest to you in one of our future articles, please feel free to contact my Client Services Director Betty and we would be happy to address your concerns in a future issue of Adler Law.
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Have you visited our web site?
Thanks and if you haven't done so already, please "Like" my firm's Facebook Page.
Sincerely,
Steven M. Adler
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4 Steps to Take Control of
Your Financial Life
Will 2014 be the year you do the right thing for yourself and your family by creating a secure financial future? Here are four steps to help you begin to take control of your financial life now:
Be willing to consider the worst.
Many people neglect their financial affairs because they are uncomfortable thinking about the scary parts of life and especially the impermanence of it. But in order to create a great financial life for you and the people you love, you must consider the worst possibilities, including your own death.
The process of looking at what would happen to everything you love is way more about living than it is about dying. Consider the worst so you and your family keep control of your finances and make important choices about how you want your assets managed and passed on to future generations.
Inventory your assets
Create a comprehensive list of all your assets and keep it up to date on at least a yearly basis. If you keep and update your inventory, you will always know what you have, your loved ones will know what there is if anything happens to you, and nothing you care about will end up in the State Department of Unclaimed Property with billions of other lost assets. Most importantly, your loved ones will feel significant ease knowing you are on top of what's most important. You handle this and they relax.
Assets include not only cash and investments but also real estate, insurance policies, annuities, retirement accounts, collectibles and also intangible assets, such as digital assets, such as your photographs, emails, and even your Facebook content, values, insights, stories and experiences. We can help you inventory and pass on those as well.
Once you have compiled your inventory, you can then start thinking about how each asset serves you and who you want to benefit from each asset you intend to pass along, whether it is a relative or a favorite charity, and how you want them to live beyond you.
Create a plan to handle them well, no matter what.
One of the most important parts of financial security for your loved ones is knowing that they can access your assets and know how to handle them if something happens to you. While most people think a Power of Attorney legal document is sufficient, it's really not.
It's just the authorization of who you want to make your financial decisions if you cannot make them yourself, but it doesn't tell anyone HOW to make those decisions. What are your values? How do you decide what to invest in? How to invest? How to make the hard choices in your financial life?
Assigning powers of attorney and declaring how you want your financial life handled is important for people of all income levels, because these are the people you choose to carry out your wishes in the event you are unable to make decisions for yourself.
Keep your plan updated.
Without a doubt your life is going to change, your assets are going to change, and, yes, the law is going to change. So it's key to re-evaluate your financial security plan at least once a year to ensure the decisions you made still make sense. This is especially critical after a major life change such as a marriage, divorce, birth of a child or death of a beneficiary.
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 When It Comes to Inheritance, Treating Children Equally May Not Always Be the Best Plan _______________________________ While most parents have the inclination to treat all their children equally when it comes to an inheritance, this is not always the wise choice. Here are some scenarios when an unequal distribution may be better: Children of unequal wealth - If you have one child that is a successful entrepreneur and another that is a social worker, you might want to leave more to the less financially advantaged child. If that's the case, be sure to either explain it to them beforehand or write a letter to be opened upon your death explaining your reasoning. Most children equate money with love, so don't leave hard feelings behind. Poor money manager - if you have a child who is poor at managing money and always in debt, you have an alternative to leaving an inheritance outright: a spendthrift trust. Setting up a trust to disburse certain amounts at predetermined ages, or allocating funds for medical or educational expenses, can protect the inheritance throughout your child's lifetime. In this case, it is best to name a trustee who is not a family member. Bad relationships - if you have a child who has one or more divorces or a string of bad relationships, you should probably consider establishing a trust in this case as well to shield assets from divorce. Special needs child - a child with special needs should be provided for through a special needs trust, which can be established in a way that protects his or her ability to receive necessary governmental assistance. Child with long-term care needs - if you have a child who has a chronic illness and needs expensive medical treatment, you might want to consider purchasing additional life insurance naming that child as beneficiary. If the child is a minor, you will need to set up a trust as beneficiary of the policy. Pre-existing loans - if you have made substantial loans to one child and not the others, you may wish to count those as an early inheritance and take them into account before estate assets are distributed. Estranged children - in some cases, parents want to disinherit a child. If you do decide to take this path, you need to be clear that you are intentionally disinheriting the child and not just simply leave them out of your estate plan. |
 Hmmm....
You probably have been lying awake at night wondering just why baby diapers have brand names such as "Luvs", "Huggies," and "Pampers', while
undergarments for old people are called "Depends"
Well, here is the low down on the whole thing...
When babies crap in their pants, people are still gonna Luv'em, Hug'em, and Pamper 'em.
When old people crap in their pants, it "Depends" on who's in the will!
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The Law Offices of Steven M. Adler, PLLC are committed to providing their clients with the highest level of professional legal services at reasonable prices. Steven M. Adler, Esq., along with the rest of his law firm's highly competent support staff, gives all of his clients the personal attention and the legal expertise which they are entitled to receive. The Law Offices of Steven M. Adler, PLLC takes pride in the quality, effectiveness and efficiency of their legal services.
Law Offices of Steven M. Adler, PLLC
390 N. Broadway, Suite 200
Jericho, New York 11753
Phone: (516) 876-1105
Fax: (516) 441-5095
Click here to read recommendations and reviews of my service on Stik.com
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