What Per Stirpes Means in Your Estate Plan
Per Stirpes is a term you must learn about in order to build a successful estate plan. It is a Latin term meaning “per branch”. Sometimes it is omitted from beneficiary forms, wills, and trusts with sometimes devastating consequences. Per Stirpes is an important term because it indicates how property should be distributed in the event […]
What a Durable Power of Attorney Is and Why You Need One
Many of us worry, with good reason, that we might one day become incapacitated and unable to attend to our own affairs. How can we be sure our bills are paid, our investments are managed, or our property sold if the need arises? A power of attorney is a document that delegates legal authority to […]
The Estate Plan For Your IRA
Assets can transfer to your heirs in one of two ways when you die. They can transfer by will, which includes probate court and public filing of related documents, or they can transfer by contract. The advantages of having your assets transfer by contract include: Privacy – The details of a contract are private and […]
Will You Be My Fiduciary?
NAPFA – the National Association of Personal Financial Advisors has a straightforward look at accepting the mantle of a fiduciary advisor. This pledge applies to all members. How about your advisor? The advisor shall exercise his/her best efforts to act in good faith and in the best interests of the client. The advisor shall provide […]
Five Questions to Consider When Naming A Trustee
The responsibilities of a trustee are often complex and time consuming. Managing trust assets often entails familiarity with tax law, real estate markets, security markets, and financial planning. Often it is the oldest or most responsible heir who is given this duty. Here are some things you should consider before deciding on a trustee. Do […]
Selecting A Corporate Trustee
Corporate trust services are offered by trust companies, banks, some attorneys, and some financial advisors. Your first step should be to determine just what services you expect to receive from the trustee. You can choose a trustee to perform the administrative functions only. This could include: Administration of the trust in accordance with the trust agreement. […]
Naming A Trust As An IRA Beneficiary
Sometimes there are good reasons to name a trust rather than an individual as a beneficiary of your IRA. Maybe you have a child who you fear will spend the money they inherit wastefully, or maybe you have a special needs heir and a direct inheritance would affect their qualifications for aid, maybe there is […]
How Much Does a Variable Annuity Cost?
Variable annuities are often confusing and hard to understand. In addition to the fees charged for managing the sub- accounts (read mutual funds) within the policy consumers also pay for the insurance portion of the policy (mortality expense) and various riders and options offered with the policy. If you want to compare the expenses of […]
The Sad Math of Losing Money
With the recent turmoil in the stock, bond, and real estate markets it is a good time to review one of the most important tenets of successful investing; minimizing your losses. The math of losses works in a funny way. If you lose 10% on your investment, a 10% gain does not make you even. […]
Kitchen Table Planning – The ‘Secret’ Formulas of Financial Planning
If you are like me math class was not the highlight of your day when you were in school. There are many formulas that melted from my brain like snow from a roof just as soon as I completed the test. But there are some math formulas that were worth relearning. I use them every […]
