Americans are living longer, which is generally good news. The average life span of the ancient Greeks was about 18 years. The average lifespan of an American male is now around 75 years and for females even longer. Advances in medicine and technology as well as a better understanding of how to live a healthy life are allowing us to enjoy not only our grandchildren, but our great-great grandchildren as well. Living longer comes at a cost, though. No one has yet figured out how to stop the natural aging process, meaning that we typically need significantly more help taking care of daily needs and staying healthy as we age. For many, this means that we will need long-term care at some point. Now is the time to consider purchasing a long-term care insurance, or LTCI, policy.

An LTCI policy works in much the same way as any other insurance policy. When the policy holder reaches a point at which long-term care is required, the policy coverage will take effect and cover most of the costs associated with the care. Considering the fact that long-term care costs can run upwards of $100,000 a year, an LTCI policy can be a lifesaver from a financial perspective.

If you decide to purchase an LTCI policy, do your homework before you buy. As with other types of insurance, there are many choices and considerations. Make sure that you fully understand what coverage you are purchasing and what conditions must be met before the coverage will take effect. Research the company as well to make sure it is financially sound. Finally, sit down with your estate planning attorney with any questions or concerns that you have before you commit to purchasing the policy.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

Setting aside money for someone to care for your pets after you’re gone is not only for the rich and famous. Creating an estate plan that includes your pet should be the typical practice for all animal owners. You can make sure when someone takes care of your best four-legged friend after you pass away, you are not creating a financial burden. A pet trust must be done right, so be certain to  consult with your estate planning attorney. Your attorney can recommend a proper estate plan that includes your pets.

Although creating a pet trust may seem like the most obvious way to care for your pet, you can make sure your beloved pet continues receiving proper care after you’re no longer around by creating a conditional Will. Your estate planning attorney can help you determine whether creating a pet trust or a conditional Will would better accommodate your individual needs.

A pet trust is a written document that you create while you are alive. To establish a valid trust, you need to fund it and appoint a trustee. Most states allow their residents to establish pet trusts for the benefit of their pets. A conditional will allows you to place a condition on an heir’s right to receive an inheritance. Typically, the condition you place on your heir is that he or she must take care of your pet to be able to receive the inheritance. Speak with your estate planning attorney about leaving a conditional bequest to a trusted friend or relative.

Pet Trusts and Conditional Wills: Ways to Include Your Pet in Your Estate Plans

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

A power of attorney, or POA, can be a helpful estate planning tool if used properly.  Understanding what the purpose of a POA is, as well as the limitations, will be important for you and your designated agent.  Following are some POA basics that can help with this discussion with your agent.

POAs are governed by state laws as are many other estate planning issues.  Do not confuse a property POA with a living will, healthcare power of attorney or advanced directive. Although these estate planning tools are similar in nature to a property POA, they are created for the express purpose of giving your agent or healthcare provider the authority to make healthcare decisions for you in the event you cannot do so.

A POA can be designed to terminate upon your incapacity.  If you want your agent to have authority that survives your incapacity, you must create a durable POA.  Most states have very specific guidelines for what creates a durable POA.  A springing POA authorizes your agent to act in your behalf only upon your incapacity.  Specific language will need to be carefully included.  You can grant broad powers to your agent under your POA.  A qualified estate planning attorney can assist you in considering all the variations available to you before executing a POA.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

American legend Dick Clark died at the age of 82 this week. Clark suffered a heart attack following a medical procedure on April 18^th. It would be difficult to find anyone over the age of 30 who doesn’t identify with Clark for one reason or another. The world mourns his loss. According to reports, the workaholic left behind a fortune that likely reaches into the hundreds of millions of dollars.

As the host of American Bandstand, from 1957 to 1987, Clark has the honor of being the host of the longest running variety show ever on American television. You would be hard pressed to come up with a music group or singer that did not perform on AB during that time period. Clark hardly sat back and took it easy though when AB went off the air. He went on to host the game show Pyramid as well as becoming the host of Dick Clark’s New Year’s Rockin’ Eve broadcast live each year from Times Square. When we all watch the ball drop this New Year’s Eve it will be bitter sweet as well all remember the voice of New Year’s Eve, Dick Clark.

Although no Last Will and Testament has been produced at this point, reports are that Clark left behind a fortune. Given how careful he was in all his dealings, it is probable that he had an elaborate estate plan which included trusts, so the estate will likely never appear in court.

Clark never stopped working, despite his age and a stroke he suffered in 2004. Clark reminds us all that our golden years can continue to be eventful and productive.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

When you lose a parent, it can be one of the most emotional times of your life.  Despite the grief, there will be estate administration matters that must be addressed.  If a decedent leaves a Last Will it will be admitted by the Court for a probate process.  If the decedent died without a Last Will or living trust the estate will go through a similar probate process.  Although each state has slightly different procedures and rules, there are a few common things you should know that may help you understand the process and determine whether your parent’s estate must be probated.

If a Last Will was not found, then the laws of intestacy of the state with jurisdiciton over the estate will be applied.  If a Last Will was discovered then the estate will distribute to the beneficiaries identified in the Last Will.  The size of the estate and the type of assets involved often impacts what type of probate process is required.

Nevada offers a form of less formal probate know as a set-aside administration for uncomplicated estates valued at less than $100,000.  Although a Court hearing is required, this process can usually be accomplished in a matter of weeks.

A more formal probate process will be required those estates with values exceeding $100,000.  This process will take months and sometimes years to complete and can cost the estate a significant amount of money.  Some assets, such as life insurance proceeds or retirment funds, which already have beneficiaries identified, may not have to pass through probate.

Contact a qualified estate planning and probate attorney to learn more about the probate process.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

Most of us assume that anyone worth millions of dollars would certainly go to the trouble of creating a comprehensive estate plan, or at the very minimum a Last Will and Testament. As with many assumptions, that one would be incorrect. A surprising number of the rich and famous have died intestate, or without leaving behind a valid Will, including the following:

Sonny Bono: Best known early on as half of “Sonny and Cher”, Bono later went on to become the mayor of Palm Springs, California and a member of the U.S. House of Representatives before dying in a tragic skiing accident in 1998. Bono did not leave behind a Will. Shortly after his death, his wife and mother became embroiled in a legal battle over Bono’s estate.

Steve McNair: The NFL star was shot and killed by an alleged girlfriend at the age of 36. McNair left behind a family and a fortune, but no Will.

DJ AM: Although this name may only be familiar to those of a certain age group, the famous DJ died of a drug overdose in 2009 without having executed a Will prior to his death.

Howard Hughes: The eccentric billionaire who was worth in the neighborhood of $2.5 billion when he died in 1976 failed to leave behind a Will. Although one was produced after his death, it was later determined to be a forgery. Eventually, 22 cousins inherited Hughes’s fortune.

Pablo Picasso: The famous artist died at the age of 91 leaving behind homes, cash and artwork valued in the millions, but did not leave behind a Will. Six years later, at an estimated cost of $30 million, his estate was settled.

You may not be famous or rich, but if die intestate you leave the problems for the courts and the state to decide. It leaves children unprotected, special people in your life disappointed and causes undue financial expense on the estate.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

Have you considered who would manage your financial afffairs if you became incapacitated?  Married couples are sometimes under the impression that their spouse will automatically be given access to all the assets.  This may not be the case.  Assets that are titled jointly may be easily accessed but that is not always the case.  Take for instance real property that is jointly titled.  If the well spouse desired to refinance, obtain a secured loan or sell real property that is jointly owned a legal representative would have to be appointed to sign in behalf of the incapacitated spouse.  A power of attorney may not adequately authorize an agent to handle these transactions.  Then there is the issue of a retirement account or pension benefits solely in the name of an incapacitated spouse.  In these cases, the well spouse, child or parent woul likely need to seek a court’s permission to access your assets taking a significant amount of time and money.

Often, when someone becomes incapacitated, assets that are needed by loved ones to maintain the household or pay bills are inaccessible when most needed.  Even worse, a dispute can arise as to who should manage the assets which can prolong the process of obtaining a court order.

There are, however, a variety of estate planning tools that can be used to avoid the need for court intervention.  Executing a comprehensive durable power of attorney or creating a revocable trust may also be viable options.  With just a small amount of pre-planning on your part you can avoid a lengthy and costly court process in the event of your incapacity.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

In many cases, you will know if someone has nominated you as executor in their Last Will and Testament because they will have discussed the appointment with you. Sometimes, however, a person fails to discuss their plans ahead of time, resulting in a surprise telephone call letting you know that you are appointed as the an executor. If this happens, what do you do?

First, don’t panic. A nomination is just that — a nomination. You are under no legal obligation to accept the position. If you do not feel that you can serve as the executor, or do not want to serve, you may decline the nomination.

If you decide to accept the nomination, there are several basic things that will need to happen afterwards. Unless someone else has already done so, you need to petition the appropriate court to probate the decedent’s estate.

Next, you should marshall and safeguard the estate assets to the best of your ability. Eventually you will also need to thoroughly inventory and value the estate assets.

Finally, if you have not already done so, you should retain professional help. Depending on the size of the estate, you may need the assistance of an attorney as well as other professionals in order to properly administer the estate. Typically, reasonable fees associated with professional services you use in order to probate the estate are paid for out of the estate assets .  If you find yourself in ths situation, consult with an estate planning attorney as soon as possible to learn of all your fiduciary obligations.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

Unfortunately, stories of Marines returning home from combat are not uncommon. Likewise, stories of dog owners who form a bond with their pet are also not uncommon. A story, however, that combines the two has moved thousands to get involved and lend support.

Just as law enforcement officers are sometimes paired with a canine partner, military personnel can also be paired with a canine partner. Former Marine Cpl. Megan Leavey, 28, and her military service dog named Sgt. Rex completed over 100 missions together during two six-month tours in Iraq. Upon returning home in 2007, Leavey realized that she could not imagine not having Rex with her in her civilian life. Leavey wanted to adopt Rex; however, adopting a military service dog is far from an easy task to accomplish. Leavey refused to give up her mission. Eventually, her story went public and garnered the support of U.S. Senator Schumer as well as over 21,000 people who signed an online petition asking for Leavey to be given permission to adopt Rex. Her efforts finally paid off — Leavey was given permission to adopt Rex and they will soon be reunited.

If you have a pet to whom you are equally attached, make sure you think about him or her when you create your estate plan. Just as you create a trust for a family member, you can create a pet trust for your pet, thereby ensuring that he or she will be provided for in the event you are no longer here to do so yourself.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.

A comprehensive estate plan that was well prepared will include a funeral plan. By creating a funeral plan you will spare your loved ones additional grief and ensure that your wishes are carried out. Once written down, be sure to leave a copy with the trustee or executor of your estate and your estate planning attorney. Consider including the following information in your funeral plan:

• How the funeral is to be paid for — life insurance proceeds, a trust set up by you, a pre-paid funeral service?
• Who is to be in charge of the details? Be sure to name alternates in case your first choice is unable to take charge.
• Whether you want to be buried or cremated
• What funeral home you wish to handle the cremation or burial
• What container you wish to be used for the burial or for your ashes
• Details about a ceremony if you want one. Be specific. For example, do you want a viewing? Open casket? Video display? Wake? What type of flowers?
• Who you wish to be the pallbearers if relevant
• Where you wish to be buried or what you want done with your ashes
• If you wish a marker, include details such as what you want written on the marker
• Any specific information you want included in the obituary

A little advance planning can make a very difficult time for your faily much easier.

Anderson, Dorn & Rader, Ltd is a member of the American Academy of Estate Planning Attorneys.