Over-gifting.   Many retirees tend to over-gift to children, grandchildren or other relatives without regard on how those gifts will affect their own finances.  To ensure the sustainability of your retirement portfolio, gift wisely.

Not Downsizing.  It is not uncommon for retirees to have a more emotional attachment to their home than is economically practical.  While moving to a smaller home doesn’t make financial sense for everyone, it should be a consideration.

Not Timing Social Security Benefits.  Giving careful consideration to when to take Social Security benefits – both yours and your spouse’s – is something all retirees should do to improve the sustainability of their investment portfolio.  Deferring benefits for just a few years can add hundreds of dollars per month to your future benefits.

Neglecting Estate Planning.  Estate planning is so much more than tax avoidance, and is necessary for individuals of all income levels.

Not Planning for Long-Term Care.  Financing long-term care needs can quickly eat away at your retirement nest egg.  You can avoid this by considering long-term care insurance and other financial vehicles to fund any long-term care needs that may arise.

Our Newport Beach asset protection and estate planning law firm has been a trusted source for estate planning, asset protection and business transactions for more than 35 years.  Contact us today for asset protection and estate planning strategies to meet your unique needs.

This year, be sure you avoid these common estate planning mistakes:

Procrastination.  This is the #1 asset killer, whether it’s putting off creating an estate plan altogether, or neglecting to revise your estate plan when life circumstances – divorce, remarriage, births – bring change into your life.

Not Choosing a Guardian.  This could be filed under procrastination as well – putting off the naming of a guardian because you and your spouse can’t decide on someone.  However, in this case, done is always better than perfect.  And you can always change your mind.

Wrong Beneficiaries.  This happens a lot – someone divorces, remarries, has children and never updates the beneficiary list for their IRAs, 401(K)s and life insurance policies.  Ex-spouses benefit a lot from this one, since a beneficiary form trumps a will.

No Power of Attorney Designations.  Who do you want to make your healthcare or financial decisions for you if you can’t?  A stranger?  Probably not.  Executing durable powers of attorney allows you to appoint who you want to carry out your wishes in case of incapacity.

Not Enough Life Insurance.  If you are important to your family as an income provider, you need to have enough life insurance to see them comfortably through a difficult financial and emotional time.

Our Orange County asset protection and estate planning law firm has been a trusted source for estate planning, asset protection and business transactions for more than 35 years.  Contact us today for asset protection and estate planning strategies to meet your unique needs.

According to today’s Palm Beach Post, International Polo Club founder John Goodman has adopted his 42-year-old girlfriend, Heather Hutchins, as his legal daughter.  Goodman is currently being sued by the parents of a 23-year-old man for wrongful death in an accident where Goodman allegedly ran a stop sign while intoxicated, killing Scott Patrick Wilson in 2010.

Wilson’s attorneys say that Goodman devised the adoption strategy in order to shield his assets against the wrongful death claim.  The court had previously found that Goodman’s trust for his two biological children could not be considered part of his financial worth if a jury awarded damages in the wrongful death suit.  The adoption papers state that Hutchins is immediately entitled to at least one-third of the trust assets since she is over 35, and (now) his legal daughter.

In an order granting the Wilsons the right to information about the adoption, Circuit Judge Glenn Kelley wrote, “The events which serve as the grounds for the relief sought by the Plaintiffs border on the surreal and take the Court into a legal twilight zone.”

Since the wrongful death suit was filed prior to the adoption, it will be interesting to see if it is nullified under the fraudulent conveyance law.  Fraudulent conveyances are conveyances made (or presumed to be made) with the intent to delay or defraud creditors. Usually, fraudulent conveyances are characterized by a lack of fair and valuable consideration and/or an attempt by debtors to place their assets beyond the reach of creditors.

If you need information on estate planning strategies to protect both personal and professional assets, contact our Newport Beach estate planning and asset protection law firm.

This infographic from CouponCabin.com details this trend and shares some retirement options for boomers who are getting ready to hit retirement age, ready or not:

For help with retirement planning, contact our Newport Beach asset protection and estate planning law firm.

Having no plan.  At the very least, you need to have a guesstimate of how much money you will need to save for retirement, an annual plan on how you will save and/or invest to get there and exactly what kind of lifestyle you want to have when you retire.

Having no Plan B.  In today’s job market, we are no longer totally in control of when we retire – an employer may make that decision for us.  Having alternate plans that consider different scenarios is a must.

Not knowing what you have.  You need to take an inventory of all your savings and investments so you can establish a solid baseline for moving forward.

Underfunding retirement accounts.  Especially for those whose employers match contributions, you are leaving money on the table if you don’t contribute the maximum amounts to your tax-deferred plans.

Not taking a calculated risk.  Being overly cautious with investments once you retire means you will likely lose ground financially.

Forgetting fees.  Scrutinize the fees administrators are charging you for managing your 401(k) and other investments.  It should be easier this year, since new disclosure rules increase transparency.

Counting on home equity.  These days, it is advisable not to count home equity in your net worth unless you are certain of how much profit you can earn by selling your home.  Instead, view your home equity as insurance in case other retirement projections don’t work as planned.

Taking time now to plan for your financial future is probably one of the best investments you can make for you and your heirs.  Contact our California estate planning law firm to get started.

Shop around – it is estimated that many funerals cost more than $10,000.  Comparison shopping for funeral services can save you a lot – several thousand dollars.

Remember it’s a business – funeral homes are in business to make money, and should not be treated – or trusted – as if they were clergy.

Know what is necessary – embalming is rarely required when a person will be buried within 24-48 hours.  Sealed caskets, which are more expensive, will not preserve a body.

Know the rules – a funeral home cannot refuse to use a casket you have purchased elsewhere, nor can they charge you an additional fee for using it.

Know what things cost – a modest casket should run about $400-$600 and will do the job just fine.

Pick and choose services – you do not have to purchase a funeral home’s entire package of services; you can pick and choose and even plan many things on your own.

Get a price list – funeral homes are required to comply with the Federal Trade Commission’s Funeral Rule, which specifies that funeral homes must supply customers with a general price list for all goods and services.

Our California asset protection and estate planning law firm has been a trusted source for estate planning, asset protection and business transactions for more than 35 years.  Contact us today for asset protection and estate planning strategies to meet your unique needs.

We came across this interesting infographic today that explains what can happen to your debt after you die:

Our California asset protection and estate planning law firm has been a trusted source for estate planning, asset protection and business transactions for more than 35 years.  Contact us today for asset protection and estate planning strategies to meet your unique needs.

In California, a celebrity’s public image is protected under California’s Celebrities Rights Act, which extends the personality rights for a celebrity to 70 years after their death.  The state’s “Astaire Celebrity Image Protection Act” (Civil Code section 3344.1) prohibits the unsanctioned use of the “name, voice, signature, photograph or likeness on or in products, merchandise or goods” of any person.

While the Chinese company argued that Jobs was not a movie star, the law extends to those who were famous enough for their image to have commercial value – and Jobs certainly fits that definition.

As noted in an article in The Trust Advisor regarding this case, this incident serves as a reminder of the importance of taking care of the intangibles in estate planning.  Even if you are not in the public eye, you may own photographs, correspondence, diaries or other important documents that you wish to keep private.  This can best be accomplished by discussing your wishes with your California estate planning attorney, who can help you protect your rights even after you are gone.

To protect your legacy – and your assets – contact our California asset protection and estate planning law firm.

A post this week at NuwireInvestor.com details a number of asset protection techniques that can protect you if you implement them before trouble strikes:

Exemption planning – the law allows you to keep certain assets, called exemptions, in situations of credit default, bankruptcy and even divorce.  Converting nonexempt assets into exempt assets can be done, but it must be done in advance.

Life insurance – the wealthy can use life insurance to protect assets from estate taxes, and the less wealthy need it if they have dependents to protect.

Liability insurance – liability insurance will pay creditors in the event of a lawsuit, and will also cover the majority of your legal expenses.

Qualified retirement plans – IRAs and 401(k)s provide an extra layer of asset protection as well as a tax deduction for contributions.

Spousal gifting trust – if you’re married, you and your spouse can create a Spousal Gifting Trust to protect assets against estate taxes and creditors, while retaining the control and use of those assets.

Family LLCs and FLPs – Family Limited Liability Corporations or Family Limited Partnerships can be used to shield assets from creditors.

DAPTs – if you are a California resident and set up an irrevocable trust naming yourself as beneficiary, you are not protected against creditors.  However, A California estate planning attorney can help you set up a Domestic Asset Protection Trust in a number of other states that will allow you to establish an irrevocable trust, name yourself as beneficiary, and protect your assets from creditors.

Offshore Asset Protection Trusts – one of the best vehicles for protecting assets against lawsuits or creditors is the Offshore Asset Protection Trust.  This is a trust established in one of a number of foreign countries that have laws in place prohibiting creditors from taking your trust assets, no matter what – while still allowing you to access your assets.

If you need information on estate planning strategies to protect both personal and professional assets, contact our California estate planning and asset protection law firm.

This is scary stuff for those who have been generous with gifts over the last two years, or who are contemplating making gifts this year.  However, as the article further notes, there is a way to still make those gifts, but in a way that mitigates the specter of clawbacks.

Those making gifts may want to consider entering into an agreement where the recipient agrees to pay an appropriate share of the estate tax to the estate in the event of clawback. An agreement like this may also lower the taxable value of the gift by the actuarial present value of the increase in estate tax caused by the clawback. Not having this type of agreement in place could potentially bankrupt the estate.

Even if gifts are subject to clawback, making the following types of gifts can help reduce estate taxes:

• Lifetime gifts to grantor trusts
• Gifts of a fractional interest in property
• Gifts to grantor retained trusts

A California estate planning attorney can help eliminate confusion as well as help families prepare for asset protection, estate planning and retirement needs.  Contact our Orange County estate planning and asset protection law firm for assistance.