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.

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.

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.

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.

Each estate plan is as individual as the person who creates the plan. Having said that, one of the most common components to an estate plan is life insurance. Whether or not you should include life insurance as part of your estate plan will depend on a number of factors; however, there are some things you should take into account when making the decision.

Your age and health. Life insurance is less expensive to purchase when you are younger and healthy, meaning you should be able to lock in the best rates. This is also when most people need life insurance for wealth and income replacement — before they have other estate assets that can be passed down in the event of death.

Know what kind you are buying. Life insurance falls into two basic types — term and insurance with cash value such as whole life or universal life. Term insurance only provides a death benefit while insurance with a cash value component potentially earns cash value, as the term implies.

Know your objective. If you only want to provide a financial safety net to your family, sticking with term insurance is likely your best bet. Talk to a financial advisor if you are considering whole life insurance. It can be a complicated investment strategy, but there are benefits that are not available to term policy holders.

Decide how much you need. This can change over the years. If you are young and single, you may only need enough to cover debts and your funeral. As you age, you should factor in what it will cost to raise your children if you die before they reach the level of maturity when they will be able to fend for themselves.

Shop around. Just as with other types of insurance policies the policy rates can vary widely. Take your time and compare rates before you commit. You should also be certain you are dealing with a company that is secure, so look at their rating with AM Best or Standard and Poors.

Know when to terminate or convert. Life insurance is rarely the best way to invest your money, but when it comes time to collect, your loved ones will find that you have provided well for them. Review your financial portfolio and your needs on a regular basis not only with your financial adviser, but your attorney, as well. You may find that you no longer need to include a life insurance policy for wealth or income replacement, but it could be useful in your estate plan as protection from estate taxes, expenses of administration, or other financial burdens of which you may not be aware.

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

We all leave behind a legacy when we die — what your legacy is depends on how much time and effort you put into creating it prior to your death. You don’t have to have a vast fortune in order to create a legacy plan; however, the wealthier you are, the more important it is to create a legacy plan that is consistent with your objectives.

A legacy plan is your chance to elaborate on your basic estate plan. Your basic estate plan allows you to determine who will receive your assets when you die. A legacy plan allows you to ensure that those assets are preserved for generations to come and/or allows you to continue contributing to causes that have meant something to you during your lifetime. Without a legacy plan, your wealth may be significantly reduced by various taxes levied on your estate at the time of your death. In addition, you will lose the opportunity to direct how your wealth will be managed after your death.

A legacy plan often incorporates trusts and other estate planning tools that can allow you to direct how your assets will be used for generations to come. A generation skipping trust, for example can provide income for your children and ensure that assets are preserved for your grandchildren. A charitable trust can be created to provide a mechanism for you to continue to support a cause that was important to you during your lifetime long after your death. Start planning now so you can create a legacy of which you can be proud.

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

The voice behind the famous song I Will Always Love You, was found dead of unknown causes in the bathtub of her hotel room just hours before the Grammy Awards. The untimely death of the 48-year old singer/actress comes after a decade of personal troubles including drug and alcohol addiction as well as the end of her highly publicized relationship with Bobby Brown. Just hours after her death, sales of anything “Whitney Houston” started to soar. The ultimate value of her estate has yet to be determined; however, it is clear that, as has been the case with other artists, her death may cause her popularity, and therefore her wealth, to increase substantially. The death of the once darling of both the screen and the radio reminds us all of how important it is to create an estate plan.

People often make the mistake of thinking that creating an estate plan is not necessary unless you have a substantial estate at the time. What many people don’t realize, however, is that the value of your estate can soar at any time. Unfortunately, as the untimely death of Houston reminds us, death can also strike at any time. The seed you plant today, whether it is an investment, life insurance, law suit or fledgling business, could be worth a small fortune tomorrow. Those “seeds” will become part of your estate upon your death. Even if they are not worth a substantial amount at the time of your death, they may continue to grow after your death. Deciding who will receive those assets, therefore, becomes important. The only way to ensure that your assets will be handled in the manner you intend is to create a comprehensive estate plan today.

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

Today, divorce is commonplace.  Various studies conclude that just over 50 percent of all marriages end in divorce.   It is also estimated that the divorce rate is around 60% for second marriages. Divorce can have a devastating emotional impact on both spouses, as well as for children who are caught in the middle.  Aside from the emotional consequences of a divorce, a divorce can also have a significant financial impact on both spouses. Divorce typically leaves at least one, and often both, spouses in a worse financial situation than before the divorce. If you have recently been through a divorce, or are currently in the middle of one, it is critical that you also consider the effect of the divorce on your estate plan.

A number of estate planning documents should be reviewed and amended incident to a divorce.  Most people will want to remove an ex-spouse as a beneficiary under their will or trust.  If you have minor children, you should also consider appointing one or more people as potential guardians of your children in the event your ex-spouse becomes incapacitated or passes way.  Retirement plans and life insurance policies may also need to be changed in order to remove your ex-spouse as the beneficiary.  While many state’s laws automatically remove your ex-spouse as beneficiary under your will, trust, retirement plans and life insurance policies, you should make the actual changes so there is no question who you intended to receive your estate and to avoid your family having to take a likely trip to court.  Lastly, durable powers of attorneys for both property and health care decisions should be reviewed and amended to remove an ex-spouse from having decision making authority under these documents.

Some of the changes described above should be considered and completed even before your divorce is finalized.   However, caution needs to be exercised because certain actions, such as changing beneficiary designations on life insurance policies and retirement plans or transferring assets out of a trust, is forbidden under the divorce laws of most states.  Any changes to your estate plan incident to a divorce should only be done at the direction of both your divorce and your estate planning attorneys.

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