When confronted with a tighter budget or uncertain economic future, many people instinctually cut back on everything they can to compensate for potential losses. This is not entirely a bad thing, since excessive debt and lack of planning both help to contribute to deeper financial troubles. But redoing a budget to compensate for changing economic circumstances calls for enhanced planning, not putting planning off for another day.

Estate planning is often thought about in terms of numbers, property, assets and finances. While estate planning does involve all of these things, the primary focus of a good estate plan is the people who will benefit from it from your efforts and legacy. Estate planning is about maximizing the benefits of your work while you are alive and providing for family and loved ones after your death.

Keeping in mind the real importance of estate planning will help individuals stick to their plans or give them the push they need to start planning through even the tightest of economic times. Estate planning is easier than most people think, and will create peace of mind that is well worth the investment.

In addition to helping you organize your finances and assets in the short term, estate planning during tough economic times has obvious long-term benefits as well. Continuing to plan and make contributions to trusts, life insurance policies, retirement and other accounts will minimize the overall damage that could be done to your estate in the long term. Failure to plan during an economic downturn can actually serve to unnecessarily multiply the effect of the financial hardship many times over.

Estate planning is important to individuals and their families, and it is even more important in a down economy. Consulting with an attorney and sticking to an estate plan will provide peace of mind in the present and maximize benefits in the future.

10 Fun Things You Can Do After You Retire

When retiring many elders find themselves bored with tons of spare time on their hands. Below is a list that I suggest you try! Some items are new experiences, some allow you to acquire a new skill, some are enjoyable and some might even help others. It is imperative that you choose things that are right for you. Here is a list of ten fun things you could do with your free time in retirement.

1. If you’re not ready to give up working then maybe you can share your talents by taking up a part-time job.

2. Learn something new, sign up for a class that interests you and maybe acquire a new skill. Ex: gardening, sewing, knitting, painting, photography

3. Work out with a fitness group, water aquatics are the best for your body.

4. Relax!! Go to the beach, stargaze, read a great book, nap. You’ve worked your whole life now is the time to relax.

5. Spend time with friends who share your interest in a craft, game, sport or hobby.

6. Volunteer by reading to children at the local library or hospital.

7. Volunteer at a non-profit organization.

8. Enjoy nature! Visit zoo's and parks. Spend the afternoon observing animals and scenic views.

9. Visit the local museums and art galleries in your town.

10. Get involved with your church.

Retirement is a new beginning, enjoy it!

Empty Nesters Syndrome

Have you recently lost touch of your children due to college, marriage, or moving? You may be experiencing the “empty nester syndrome,” which is the general feeling of loneliness that parents may feel when one or more of their children leave home. This usually happen mostly with women, but it can happen to men as well.

Although this new change can be traumatic, many adults seem to look at it as a time to enjoy their marriage. A study at UC Berkley discovered that couples after their children leave home actually end up happier and have a healthier relationship. While the Berkeley researchers had hypothesized that the improvement in marital happiness came from couples’ spending more time together, the women in the same study reported spending just as much time with their partners whether the children were living at home or had moved out, but they said the quality of that time was better.

If you are expecting your children to be soon moving out here are a few things you can do to be prepared. Prepare your child for the real world so you don’t worry about them, avoid any big changes, write up a list of things you would like to accomplish, and talking to other empty-nesters will always help you cope.

Vacation Destinations for the Retired

Senior travel is increasing in popularity. It is becoming easier to travel around the globe, and senior citizens are becoming more active than ever before. Here are some vacation destination ideas for the retired:

If you are an avid golfer, treat yourself to a vacation at a golf resort. Pebble Beach in northern California is one of the world’s top golf courses. Being near the ocean, this beautiful resort is certain to give you a memorable golfing experience.

Why not venture out to a continent you have never explored before? Europe is a popular destination with great architecture. Utilize your time and thoroughly explore Europe—Eiffel Tower and the Louvre in Paris, Colosseum in Rome, the Tower of London—the possibilities are endless. Renting a vacation cottage can be an option for a longer vacation.

For a great vacation without the hassle of flying, consider taking a Caribbean cruise. You can enjoy great scenery and all the amenities you need while traveling to your destination.
Want to stay on a budget? Consider a local vacation. San Diego is full of beautiful scenery. Consider a relaxing weekend of staying at a local hotel, strolling the beach, and visiting museums. This could also be your chance to explore a city you have not had a chance to visit.

There are various websites and agencies dedicated to retired and senior travel, which can help you plan your vacation destination or find companions.

These tips are brought to you courtesy of Walters & Ward, A Professional Corporation. We specialize in estate planning in California and understand that clients have a wide range of needs. As San Diego estate planning attorneys, we offer advice on a wide range of topics. Our focus is helping clients avoid probate, reduce taxes, and keep family matters private. But we're not opposed to offering advice on vacations every now and again either!

Living Trusts

A living trust is a popular way to avoid probate, which can be a very expensive and time consuming process. A living trust is created while a person is still alive who names a trustee to the assets of the trust. By setting up a living trust, probate is not needed for the trustees to inherit the assets of the trust. Anything that is transferred into the living trust before death doesn’t go through probate and can avoid any lawyer and court fees. The beneficiary simply transfers the named assets and once the assets are transferred, the living trust ceases to exist.
It is still a smart decision to have a will in addition to a living trust for any property that is acquired shortly before death or any property that is mistakenly forgotten to be included in the living trust. By setting up a will in addition to a trust, you can simply name a person to inherit any assets and property that is not already left to a different specific beneficiary. This will ensure that all of your assets are dispersed in a manner that you approve of rather than it being determined by the state.
Here at Walters and Ward, we have years of experience in helping individuals and couples set up living trusts and wills to protect their family from costly fees and headache after they pass on. We can explain all of your different options that you may have for your specific circumstances as well as all of the benefits and negatives of each option in order to assist you in making the right decision for your assets and family. Call us today for a free consultation that will help lead you in the right direction and leave you feeling confident and informed about your future and your family’s future.

How to Avoid Probate and Death Taxes

There is a lot of hassle that comes with drawing up a will. It seems like it might be impossible to avoid the large sum of taxes that come with transferring your estate and belongings to your family and friends. But what may come as a surprise is, with the right San Diego trust attorneys, you can create a solid trust that will allow you to pass on your estate free of taxes and probate.

The first step of probate is when the court decides whether the will is invalid or not. If it is deemed invalid, the probate court applies the state inheritance laws to the estate. If the will is deemed valid, the court then oversees the process of settling the will. This includes overseeing the distribution of assets (including payment of state and federal taxes), hearing contested claims by creditors and others seeking to collect from the estate, deciding which possessions are subject to estate administration, and supervision of many more actions that may have even been specified within the will.

Probate can lead to large taxation of your estate and unwelcomed assistance in the distribution of your possessions. To avoid these death taxes and the long process of probate, it is important to set up a trust along with your will. San Diego probate lawyers are able to set up solid trusts that prevent probate and allow you to pass on your possessions free of estate taxes.

Estate Planning is extremely important in ensuring that your estate and belongings are passed on to whom you want and how you want. Setting up a trust is invaluable and it’s the only way to make sure your family and friends avoid probate and death taxes. Walters and Ward are great San Diego lawyers that will help you further understand the importance of trusts and help you start the process of protecting your estate.

What Issues Need to be Addressed during the Estate Planning Process?

Estate planning often becomes a confusing and overwhelming process because it involves legal documents such as wills, trusts, and power of attorney. The best way to approach estate planning is by determining all the issues that need to be addressed. Once you have worked out all of your focus areas, everything should fall into place without a problem.

What are the issues that need to be addressed? Asking who, what, when and how of transferring responsibilities when you can no longer perform them because of disability or death is a great way to start. Appointing individuals or professionals that you trust to carry out your responsibilities is very important. These individuals will perform the responsibilities concerning the people in your life and the property of your estate.

The best way to get started is making a list of people who are important to you and depend on you. These people include your children, friends, spouse, and employees, etc. After that has been completed, a list of properties that you own and control over must be made. Then you have to decide which individuals will have the responsibility of taking care of your assets, and be sure to have a set of guidelines that you want the individuals you select to follow.

These are the issues that any estate plan should address. There is never a truly perfect solution when it comes to estate planning, but if it is not done properly and in an orderly fashion, a judge will be making the decisions for you instead. Consulting an attorney, like those at Walters and Ward, LLC, can help guide you through the process.

Estate Planning in California

Being prepared for anything is very important these days. You never know what tomorrow will bring. The problem is, many people neglect one very significant part of life – people forget about death. What do you have to worry about if you’re gone, right? Wrong. Dying has never been more complex. The State and Federal courts will prowl through your estates in search of their share of what you've worked and saved for. That is, unless you have the right documents in place.

If you’re smart, you’ll protect yourself and your family now. Living trusts in California guarantee you and your heir’s privacy upon your death as well completely eliminating Probate. At Walters and Ward, we can do just that. Without the proper documents, prepared by a credentialed lawyer to meet your specific needs, your heirs might wait three years or more, and potentially spend hundreds of thousands of dollars going through probate.

You've worked hard all your life and you love your family. Protect them and everything you’ve worked your whole life for. You should be able to find a qualified Californian estate lawyer in your community. They will help take inventory of your estate, and ensure that all of your assets will be protected.

The bottom line is that California living trusts offer your family privacy, and can save a significant amount of time and money upon your death by avoiding probate

You Have a Will, But You Also Need a Trust

A will is simply a testament that defines which heirs will receive what assets. On the other hand, a trust is a property management arrangement in which one person (the trustee) manages assets for the benefit of another person (the beneficiary). When you have a will and a trust, court supervision during probate is eliminated. You no longer have a need for a court Executor to manage your assets for people whom you’ve already named as recipients to your assets. After-death distributions under a living trust are usually implemented privately, and avoid probate. This works because the trust creator, while still living, transferred assets into the name of the trust.

There are also other benefits that may make the process of losing a loved one a little easier. Having a trust eliminates the cost of a second state probate proceeding where there is out of state property. There also will be no automatic court supervision to deal with disputes, and all of your affairs remain private.

It is also important to note that you do have the option to create a trust in which you are able to change and modify throughout your life. This gives you the freedom to change your will and trust according how your life changes.

Though this may be hard to think about now, it is essential to plan for the future now. It’s important to make sure your loved ones are secured in the assets you’re giving them, and trusts give you the security you need.

Walters & Ward, A Professional Corporation specializes in estate planning in California. As San Diego estate planning attorneys, we have completed over 11,000 wills and trusts packages in thirty years of business. Our focus is helping clients avoid probate, reduce taxes, and keep family matters private.

What are the Differences between Wills and Trusts?

One of the surest things in life is that over time, people acquire stuff. Call it stuff, things, money, property, whatever – the point is that if something were to happen to you and you no longer own or posses this “stuff”, it’d be a good idea to already have a plan in place to disperse your belongings as you wish. This is the idea behind wills and trusts – to have your things divided up amongst recipients as you please, so that you can still have a say in matters once you cannot speak for yourself. Although it seems like something everybody should have, over 66% of Americans do not have a will or trust established in case of their death.

The main difference between a will and a trust is how your stuff is given out to beneficiaries. While a will explains your testament that simply designates who gets what, a trust establishes an intermediary, or trustee, who owns and administers your stuff for the beneficiaries. While a will can contain and establish a trust, a trust typically deals with real estate, shares, or cash.

A trustee can be a company, individual, or organization (such as a charity). For example, if a charity is chosen as a trustee, they own whatever is designated in the trust, but only on behalf of the beneficiaries, which would most likely be friends or family members of the donor. The beneficiaries get a revenue stream for a period of time, and then the charitable foundation gets the remainder of the trust. This is called a “split interest” trust and avoids income and capital gains taxes if it is shared with a charity.

While a will costs less and is easier to create, it will only pertain to the property that is specifically outlined in writing. On the other hand, a trust establishes a trustee that will make any other decisions that need to be made. Other important decisions include the area of health care, such as whether to keep you on life support - a decision that can be very difficult and emotional for your spouse or family to make for you.

Although wills and trusts are a very complicated legal matter, I hope you’ve learned something from this article and are more enlightened as to whether you’ll need just a will or a trust as well. Either way, Walters & Ward Estate Planning is ready to help you. Visit our website today at WaltersTrustInfo.com.

5 Ways to Eliminate Your Estate Taxes

1. Annual Gifts
A person can make a monetary gift annually to another person, usually a child or grandchild, of up to $12,000 per year without having to pay a gift tax. If a husband and wife each give this amount per year, they are giving $24,000 per child or grandchild without having to pay a gift tax on the sum. The total amount that is given away is deducted off of the estate value. If the end estate value is less than $600,000, it is exempt from estate taxes.

2. Probate-Avoidance Trust
The Probate-Avoidance Trust is for people who have an estate valued under $600,000. This allows the person to avoid probate and estate taxes since the estate is exempt from this kind of tax.

3. AB Trusts
An AB Trust is designed to double the exemption amount for any given year of death. It is a very common way to avoid probate and estate taxes for people with an estate valued over $600,000. A married couple enters an AB Trust with naming a final beneficiary, usually a child or grandchild. If one spouse dies, half of the property is transferred to the final beneficiary while the other spouse still has rights to the property and any income that is generated for the remainder of their life. Once the second spouse dies, the other half of the property is transferred to the final beneficiary without incurring any estate tax.

4. QTIP Trust
A QTIP trust is best for those who have children from different marriages. This type of trust ensures that the living spouse, who must be a citizen, is financially taken care of for the remainder of their life without the interference from the deceased spouse’s children from a different marriage. At the death of the second spouse, the assets are passed to the beneficiaries of choice, such as children from the first marriage. This type of trust provides flexibility in estate tax planning.

5. Charitable Trusts
Charitable trusts are a way to get a large tax reduction by giving generously to a charity. Once a charity trust is set up and operational, it is irrevocable and the person who set up the trust cannot regain control. The charity becomes the trustee and any assets that are transferred into the trust are managed by the charity in order to generate income. They pay the person a portion of the income generated for a specific amount of time and when the person dies, the charity gains possession of the assets listed in the trust. The estate will not be subject to estate tax since it will be in the possession of the charity.

Before making any decisions about your estate plan, Walters and Ward advises you to speak with an experienced attorney. We can help you decide what will work best in your situation.

Estate Planning Tips

With the state of the current economy and an uncertain future for many, estate planning has now, more than ever, become essential step for any family.

CNN's "Money 101" series recently covered estate planning and offered up some information and tips for those considering to implement the various tools of estate planning. Here are some

• Having even a basic estate plan in place is important, no matter what your net worth may be. Contrary to popular belief, you don't need to be wealthy to consider having a trust and/or will.
  

• The elements of the estate plan include the following: a will, the assignment of power of attorney, and a living will or healthcare proxy, and (for some people) a trust may be the best solution

• Start by taking an inventory of assets, including investments, retirement savings, insurance policies, and real estate or business interests. Consider who you would want inheriting your assets, who should handle financial affairs if you're incapacitated and, lastly, who you would want making medical decisions if you are not able to make them yourself.
  

• Everybody should have a will, since it can become extremely costly for your heirs and you have no control over who gets your assets. This is also needed to take care of any holdings that may exist outside the trust.

• Make sure to discuss estate planning with family members, in order to avoid confrontation or conflict surrounding the distribution of assets.

• There are a few federal tax issues to consider: The federal estate tax exemption has been rising gradually and is expected to hit $3.5 million this year. In addition, the estate tax is coming down and is scheduled to phase out in 2010. Yet, this may only last a year, depending on whether Congress chooses to re-instate it in 2011. You should also be well-versed in any state taxes that may be levied against your estate.

• Two ways exist to give gifts tax-free and reduce your estate. First, you may give up to $12,000 per year to an individual without being taxed. Second, payments to medical or education bills are tax-free regardless of the amount, so long as the payments are made directly to the institution where the expenses were incurred.

The rest of of the tips can be found here

Source: CNN