When you have a lot of your financial resources invested in an asset that is not liquid you are presented with an estate planning challenge. People who are partners in small businesses are generally going to be in this situation. If you were to pass away and leave your share in the business to your heirs what exactly would they do with it?

The first thing that comes to mind would be that they could sell it, but then your remaining partners would have no control over who would be joining them. This is not going to be acceptable to most people.

One thing that you could do if you are in this situation would be to enter into a buy-sell agreement with your partner or partners. A very common type of buy-sell agreement is known as the “cross purchase plan.”

Executing this plan involves the purchase of life insurance. The partners in the business first get together to determine the value of each share. They then purchase life insurance on one another with the proceeds adding up to the value of a share.

Should one of the partners pass away, the survivors will collect the insurance policy proceeds. These funds are then used to buy the share in the business that was owned by the deceased partner from his or her estate at a price that was agreed upon by all when the agreement was put into place.

Buy-sell agreements can provide a rather straightforward solution for small business partners. To explore them in depth, simply take a moment to get in touch with a Fairfield County estate planning attorney to set up an informative consultation.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

When you reach the point in your life when begin to look back and evaluate the mark that you have made on the world a lot of things may cross your mind. When you are gone, how will you be remembered? You may ask yourself how you can make an impact that is felt even after your passing, and this is what legacy planning is all about.

There are a number of different courses of action that you could take to have a positive influence on the community for years to come and perhaps even permanently.

For example, you could choose to finance the construction of a community center or a playground. There are those who will fund an addition to a museum or a school of some kind. Developing a commemorative scholarship that is endowed on an annual basis into perpetuity is another option.

As an elder you are an invaluable link to generations of your family that have come before you. A lot of people are very interested in their family trees, and you could provide a priceless gift to your family by taking the time to write your autobiography or at least a collection of memoirs. The composition of an ethical will sharing your moral and spiritual values is another option that you may want to consider when you are crafting your legacy.

Intelligent legacy planning can allow you to have a lasting impact. To learn how to make your long-term visions a reality, take action right now and set up an appointment to speak with an experienced, licensed, and savvy Hartford legacy planning attorney.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

One of the estate planning tools that is most frequently utilized is life insurance, and for many people the purchase of life insurance is the initial step taken into the realm of estate planning. You may be one of the many who is first exposed to life insurance as a component of your benefits package at work, and a lot of people who are first starting out are unmarried and without children.

At this point in your life the life insurance coverage is a way to cover your final expenses and pass a little something along to your loved ones should the unthinkable take place. And after all, basic coverage is usually going to be paid for by the company so anything that is free is welcome.

As you progress through life you may well get married, and when someone else is depending on your income life insurance takes on added significance. When children come along you’re going to have to revisit your coverage to make sure that they are provided for, and it would be prudent to think long-term when you’re making financial projections with regard to their needs. Nobody likes to think that their marriage will come to a close, but divorces is another life-changing event that precipitates a review of your insurance coverage.

In addition to serving as a vehicle of income replacement, life insurance has other uses in the field of estate planning. There are those who have the lion’s share of their assets concentrated in a single piece of property such as a business or some real property. You may want to leave this property in its entirety to one of your heirs for one reason or another. To be fair to all you may take out life insurance policies making the other heirs your beneficiaries, with the value of the policies being similar to the value of the property in question.

If you would like to probe deeper into the subject of life insurance and how it can fit into your estate plan, simply get in touch with an experienced estate planning attorney to arrange for an in-depth consultation.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

There are some people who think that estate planning involves nothing more than drawing up a last will, and they assume that they have plenty of time to do that in the future so they really don’t give the matter much thought. People who take this approach are not acting in light of any estate planning goals they may have. This is a personal choice and there are no absolute rights or wrongs, but there are others who have specific things they would like to be able to do for their loved ones after they pass away.

If you do have specific objectives with regard to your legacy, they are going to logically impact your actions in the present. This is why long-term financial planning, retirement planning, and estate planning all go hand-in-hand. There are folks who have those bumper stickers on their cars that say “We are busy spending our children’s inheritances.” These people need only plan to finance their own retirement years without having anything left over to leave behind to their families. But those who do have legacy goals will have to budget accordingly throughout their lives.

You’ll hear retirement planning attorneys say that you should start planning for your retirement early on during your working career, and many people hear this suggestion and let it go in one ear and out the other. However, if you stop for a moment and do the math, even if you save a relatively modest amount of money each month but do so over a sustained period of time it will add up considerably. The key is to get started early and be very consistent. If you do this and make intelligent investments along the way you should be able to meet all of your long-term financial goals.

If you recognize the need for comprehensive planning but don’t know where to begin, a wise first step would be to consult with an experienced estate planning attorney who will help you devise a holistic plan for the future.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

When you are planning your estate you have a lot of things to take into account. After all, this is going to be your final act of giving and it involves all of the worldly possessions that you been able to accumulate throughout your life. With so much to consider, it is very possible to overlook some of the details. As much as you want to take care of all your loved ones, you may actually neglect a beloved family member unintentionally: your pet.

If you have a pet or pets, it is important to make sure they are provided for as well. Many people expect to outlive their pets and don’t plan for them because of this, and others simply assume that it is a matter that will take care of itself. But if you want to be sure that your pet is properly provided for you need to be proactive about asserting your wishes, identifying a suitable caretaker,  and providing the financial means for the new owner to take care of the pet.

There was a story recently in the news about someone who certainly made his pets a priority when he was planning his estate. Fashion designer Alexander McQueen took his own life last year, but he certainly made sure that his pets would not suffer. McQueen had three dogs, and he left behind almost $82,000 earmarked for their ongoing care.  He also made very generous bequests to two charities that are devoted to the well-being of animals: The Battersea Dogs and Cats Home and the Blue Cross animal welfare charity.

Pet planning is important piece in the estate planning puzzle. To find out more about how to make sure that your pet is provided for through the execution of the proper legal documentation simply arrange for a consultation with an  estate planning attorney.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

Fans of music around the world were met with some extremely sad news recently when the death of British singer Amy Winehouse was announced. Winehouse was an extraordinary talent, a winner of five Grammy awards whose music touched the lives of millions of people. Some critics say that she helped to revive a stagnant British music scene with the enormous success of her seminal album Back to Black.

Though Amy Winehouse was known to indulge in drugs and alcohol to excess, the precise cause of her death has not been determined as of this writing. She was just 27 years old at the time of her passing, joining the so-called “27 Club” with other deceased musicians Jim Morrison, Janis Joplin, Jimi Hendrix, Brian Jones, blues legend Robert Johnson, and grunge rocker Kurt Cobain.

Because of her image as a freewheeling, hard living sort many people would assume that she did not have her financial affairs in order. The reality is that according to British newspapers she did in fact have a current estate plan in place, and it is a good thing that she did.

Amy Winehouse had an ex-husband, Blake Fielder-Civil, who is imprisoned at the moment. Because of British law he may have actually been in line to inherit her assets, but because of the fact that she engaged in effective estate planning her wishes will be honored and her parents and her brother will assume ownership of her assets.

Though the Amy Winehouse case is certainly not the typical one on a number of different levels, it does shed light on the fact that younger people do pass away at times for one reason or another. Many young adults have spouses and children, and these days two incomes are usually required to maintain the standard of living is enjoyed by most families. So estate planning is something that is relevant to all adults, and if you don’t have an estate plan in place at the present time you may be leaving your loved ones in a precarious situation.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

Legacy planning is going to involve a consider amount of soul-searching. Of course you’re going to want to make decisions regarding what you give to your loved ones, but you also want to consider how you give it. It is not always as easy as simply handing over a lump sum of money to everyone that you want to remember because different people are at different stages of life and have different proclivities when it comes to handling money.

You don’t want to do more harm than good by giving a loved one too much too fast, and at the same time an  inheritance with strings attached can lead to resentment. So the matter has an emotional side as well as the financial side.

Along these lines, when you’re planning your estate you are in fact planning for your death to put it bluntly. Most people would like to feel as though they were in the best possible graces as their final days approach, and to this end many are inspired to engage in philanthropic efforts when they are creating an estate plan.

One very popular and efficient way to give to charities would be to make contributions into a donor advised fund. With these funds you can recommend that multiple charities receive grants from the assets you contribute, but you can do this after making a single contribution. So you don’t have to contend with mountains of paperwork coming from various different sources if you want to support multiple charities. Plus, you get a charitable deduction for the year that you make the contribution even if you don’t make any grant recommendations until after that year has come to a close.

Contributing into a donor advised fund provides the tax advantage of removing the assets that you contribute from your estate for estate tax purposes. And, no capital gains tax is applicable to securities that you donate into a donor advised fund. To gain a more detailed understanding of how donor advised funds can fit into your overall estate plan, simply arrange for a consultation with an experienced legacy planning attorney.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

There are those who go through life without an estate plan because they feel as though they have plenty of time to address the matter in the future. This is a gambler’s mentality because the reality is that we are all “day-to-day” as they say. When you make this type of gamble you are not putting yourself at risk; it is your family members who would be left behind to sort through details that you should have taken care of in advance.

Some feel as though their affairs are not that complex and that everything will just take care of itself after they pass away. In reality, things do not take care of themselves and every responsible adult should have at least a basic, core estate plan in place. If you have no idea where to begin, the logical course of action would be to arrange for a consultation with an estate planning attorney. He or she will evaluate your situation and the nature of your wishes and make the appropriate recommendations so that your family is not left completely unprepared.

There are two elements that are included in just about every estate plan. Of course you’re going to need a vehicle of asset transfer, and people are most familiar with the last will as an asset transfer vehicle. However, this is not your only option. There are many advantages to the creation of a revocable living trust, and this is something that you would want to discuss with your estate planning attorney.

You’re also going to want to have advance health care directives in place. One of these is a living will, and with this document you elucidate your preferences with regard to the medical procedures you would accept or deny in the event your incapacitation. Another advance directive that is highly recommended is a durable medical power of attorney. With this document you empower an individual of your choosing to act in your behalf should you become unable to make your own medical decisions in real-time.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

There are those who have heard that the estate tax is something that they don’t have to worry about because it is a levy that is only imposed on “the rich.” This kind of thinking can get you into trouble because that definition can sometimes be extended to people who do not consider themselves to be wealthy at all.

At the present time the estate tax exclusion is $5 million, so only the portion of your estate that exceeds this amount is subject to the estate tax, which is carrying a 35% rate at present. However, if there are no changes made to existing laws in the meantime, the estate tax exclusion is going to be reduced to just $1 million in 2013 and the maximum rate of the tax is going up to 55%.

You don’t have to be truly rich to have total assets that exceed $1 million, especially if you include the value of your home. So, there are those who would be able to stay within the exempt amount if they could somehow remove the value of their homes from their estates. This can sometimes be done through the creation of a qualified personal residence trust.

You place the home into the trust and you name beneficiaries who you would like to see inherit it eventually. But you continue to live in the home rent-free for a period of time that you state when you draw up the trust agreement. By doing this you remove the home from your estate for estate tax purposes, but it is considered to be a taxable gift.

But the value of that gift is reduced by the interest that you retain in the home while you continue to live there. This value will be much less than the fair market value of the home, and if it is within the lifetime gift tax exclusion, the home will have been transferred to your heirs free of taxation.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

James Brown was a true musical legend, a rhythm and blues singer extraordinaire who earned the nickname “The Godfather of Soul.” Brown enjoyed a long and illustrious career and he was truly someone who changed the face of modern music. No less than four of his albums made Rolling Stone magazine’s list of the top 500 album releases of all time. He was a Grammy award winner and one of the first inductees into the Rock and Roll Hall of Fame in 1986.

“The Hardest Working Man in Show Business” passed away back in 2006 at the age of 73. He had set up a trust that was charged with the responsibility of administering his estate, which is estimated at about $100,000. He stipulated that he wanted all of his wealth to go to poor and underprivileged children.

This seems like a very kind and generous act, but as of this writing the children have not seen any of the money. Tomi Rae Hynie says that she was married to James Brown at the time of his death and that he was the father of her child, James Brown II. In addition to this child Brown had at least eight other children and three ex-wives.

Understandably, Hynie and Brown’s children did not feel as though they should be left with nothing. Since Brown did not update his estate plan after marrying Hynie the state was willing to hear her arguments. And his children are contending that his estate plan did not reflect his true wishes and that he must have signed the documents when he was either mentally incompetent or under undue influence.

Clearly there are a lot of costs associated with such a long and protracted legal battle and they will certainly reduce the amount that is distributed when the case is finally resolved.

The takeaway is to make sure that you get together with an estate planning attorney when your marital status changes so that your estate plan reflects your current situation so that there is no confusion after your death.

Nirenstein, Horowitz & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.