Category Archives: Estate Planning

Estate Planning Facts. Last Will and Testaments versus Living Trusts. Estate Taxes. Gift Taxes. Inherited IRAs. Guardians for minor children. Pet Trusts. Funeral Agents. Avoiding Probate. Get Your Affairs In Order.

DNR order – should your pet have one?

Do you know what a DNR (do not resuscitate) order is? It is a medical document that alerts doctors and other medical and rescue personnel about whether you want them to do anything they can to revive you if your heart stops.

I have been in the local hospital a few times for various medical procedures and am used to the questions that the staff asks before admitting you. And I have a DNR (do not resuscitate) document that I keep on file there. If my heart stops and reviving me will negatively impact my quality of life, I want my loved ones to let me go.

Information for and against human DNRs is readily available on the web and in books; anyone you ask will have an opinion.

However, for pets it’s a different story. Last week I had to take my dog, Suzi, to the veterinary hospital for a minor medical procedure and was given several forms to sign. One of them caught me totally off guard. I was asked to sign either a DNR or an “administer CPR” form for her. I had never thought about a DNR in relation to my dog and didn’t know what to do. I had no idea about how easily a dog’s heart stops beating during surgery and how quickly it’s quality of life will be impacted after that stoppage.

The vet told me that asking for a pet DNR is becoming common practice for many animal hospitals but would give me no recommendation on which form to sign.

When I got home, I got on the web and tried to research a pet DNR to see what the recommended practice is. I could find very little helpful information. I called friends with pets and they had no idea what to do either.

Luckily, the procedure went smoothly and Suzi was fine. But what if there is a next time? What should I do then?

We at Die Smart would love to hear from you with your opinions on this subject. To write a comment or to find out more about end of life planning, including human DNRs, go to www.diesmart.com.

Helen and Les Brown were born on the same day, remained married for 75 years and died just one day apart at age 94. What a wonderful story of true love. It would be great if there were more couples like them in the world.

75 year marriage But, while thinking about this great couple, being a part of the Die Smart community I can’t help but think about their estate. It’s bad enough if one person dies and a family member has to settle the estate, including dealing with lawyers, probate court and the mounds of paperwork that are necessary. But the double work of settling the estates of two people can be massive.

Did they have wills, trusts, POD accounts? Will one estate have to be settled before the other one? Did they have their affairs in order?

To learn about what you should do to make sure you can avoid probate and make it easier for your loved ones to settle your estate after you’re gone, go to diesmart.com.

DOMA – It’s defeat causes more tax headaches

If you live in a state that recognizes gay marriage, you are entitled to federal tax breaks that other married couples get. However, if you have business income from a state that doesn’t recognize same sex marriage, you’ve got a problem.

This week, Reuters published an article about a married California couple, Jeremy and Randy. They don’t know how to report the business income Randy gets from Florida – a state that doesn’t recognize gay marriage.

The chief of the IRS, Danny Werfel, was quoted as saying that the IRS hopes to publish rules that will address issues like this one as soon as possible. But there are more than 200 tax code references to marriage that have to be evaluated before this can happen.

Do you think the couple should get tax breaks based on income earned in a state that doesn’t recognize gay marriage? Let us know what you think.

For information about other financial matters like estate planning, go to our website, diesmart.com.

6 estate planning lessons we can learn from James Gandolfini

Everybody thinks celebrities have teams of lawyers that help them protect their assets and ensure that their affairs are in perfect order. This is not always true. In fact, many people don’t know the lessons that are included in this About.com blog by Julie Garber. And they are lessons that, if not learned, can cost your family time, money and public exposure after you die.

James Gandolfini, who died in June, is used as an example of these 6 estate planning lessons. It’s important that you read about these lessons and be sure that you have protected your estate. If you don’t, your loved ones may be caught up in a public probate process that will cost them a great deal of time and money.

For more about probate, what it is and how you can avoid it, go to www.diesmart.com.

5 things you should know before you agree to be an executor

When my father died ten years ago and I found out he had named me as his executor, I thought “Okay. It’s no big deal.” Was I ever wrong! I didn’t realize how much time, effort and frustration would be necessary to get everything settled. And I didn’t know that I would also have to be a detective.

AARP recently published an article that listed five questions you should ask yourself before you agree to become an executor. You might feel flattered if asked but think carefully about the questions and be sure it’s something you’re comfortable taking on.

1. Do you have the time to take on this project? When I started the process, I didn’t realize that it would be more than a year before my dad’s estate would be settled and that, during that year, getting all of the paperwork done and answering all of the government’s questions would often feel like a full time job.

2. Do you have the skills to handle the process? You have to be very organized and good with numbers. Keeping massive spread sheets and tracking all of the paperwork nearly drove me crazy.

3. Do you have the temperament to deal with all of the details? I am a fairly calm, easy going person but I found myself getting very frustrated when confronted by people who made ridiculous demands. One example I can remember is when the state of New Jersey (where my father died) asked me to sign a bunch of papers in black ink, get them notarized and send them in. I did that and was shocked when I received a letter from a government office saying that I needed to resign them in blue ink, get them notarized again and send them back. I did it and got one more letter. It told me that I had not completed the forms correctly. Believe it or not, it the letter said that the forms needed to be signed in black ink!

4. Do you know the rules of the state in which the estate is being settled? Estate rules are very complex and I ended up hiring an attorney to help me get everything processed correctly. Many people take this step after realizing what is involved. For example, if you incorrectly declare the value of the estate, there can be legal repercussions, not just for the estate but for you as well.

5. Can you afford to be the executor of the estate? I lived in California and my dad died in New Jersey. Some things just couldn’t be handled by phone; this necessitated a few expensive trips back and forth across the country. And it’s not just the money. What’s your time worth? Can you afford to handle this job for nothing? In some states, executors are permitted to charge a fee that is a percentage of the value of the estate. However, since this money comes out of the estate, taking a fee may cause conflict with family members.

If you agree to be an executor, be prepared to devote a great deal of time to the project. Be patient and don’t let little things get to you. Stay organized and check every detail. You will get through settling the estate…eventually.

For more information about estate planning and settling an estate, go to www.diesmart.com.