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.

Once the world began to get over the shock of the death of music legend and golden girl Whitney Houston, reports began to surface that there was trouble brewing with regard to her estate. Houston was found dead in her Beverly Hills hotel room at the age of 48 and left behind only one heir — 18 year old Bobbi Kristina. While fans rushed to buy anything related to Houston, Houston’s family was already poised for a fight over her estate with Houston’s ex-husband Bobby Brown. With the news this week that Houston left behind a trust, everyone in Houston’s camp can breath a sigh of relief.

Despite unprecedented success in her professional career throughout the 90s, Houston was plagued with personal problems as a result of a battle with drug and alcohol addiction as well as a stormy relationship with Bobbi Kristina’s father, singer Bobby Brown. After finally divorcing Brown in 2007, Houston appeared to be on the road to a comeback when she was found dead last month.

While Houston’s daughter is of age to inherit directly, she allegedly battles her own issues with drugs and alcohol, making her susceptible to a claim that she is unable to handle her own finances and in need of a conservator. Houston’s family was reportedly worried that Brown would petition a court to become her conservator, effectively gaining control of Houston’s fortune. Houston, however, apparently thought ahead and created a trust for Bobbi Kristina. By creating a trust, Houston put a stop to any attempts to gain control of the money and put control of the money in the hands of someone she hand picked as trustee.

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.

A trust is often used as an estate planning tool in order to accomplish a variety of goals. At its most basic, a trust consists of a grantor (sometimes called a settlor, or trustor) who establishes the trust, a trustee who administers the trust assets, at least one beneficiary, and assets to fund the trust. Often, all three positions — grantor, trustee and beneficiary — can be held by the same person. Beyond that, trusts come in numerous forms that range in complexity; however, one simple distinction centers around whether the trust is revocable or irrevocable. Understanding some of the important features of the two options can help you decide which one is right for you.

All funded trusts, including the revocable trust, avoid probate. What this means is that the funds held in the trust are not required to pass through the often lengthy legal process that follows the death of the grantor, making the trust benefits available to the beneficiaries in a much more timely fashion. A much more important aspect of a revocable trust is that a revocable trust, as implied by the name, can be revoked, amended or modified by the grantor at any time. This feature can be very important if you feel that you may wish to change the beneficiaries or the specific terms of the trust at some future point. This flexibility makes a revocable trust an attractive option for most people.

An irrevocable trust cannot be revoked, amended or modified without court intervention in most states. Under most circumstances, the grantor may not be the trustee or the beneficiary.  All control and access is delivered to an independent trustee and a third party beneficiary.  What the grantor receives, however, for giving up the ability to control the trust is asset protection, probate avoidance, possible estate tax avoidance and potential income tax and, when the beneficiary is a charity, capital gains tax advantages.  These are highly complex strategies and must be entered into with appropriate caution.  The expertise of a qualified estate planning attorney should always be sought.

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

There are various outlets available for bare bones estate planning documents. Some contend that estate planning is as simple as filling in the blanks. Obviously, there are many reasons why one document does not fit all situations.

Something as important as planning for your potential disablity and transferring all the assets that you have accumulated throughout your life to your loved ones is not something to entrust to documents found on the Internet from an unknown drafter.  This is a highly sensitive matter that requires professional expertise.

This is true even if you have a seemingly uncomplicated family situation.  The truth is most American families are not of the “cookie-cutter” variety.  There are often children from previous marriages involved and these blended family situations create the need for specialized estate planning.  Some people have business succession issues to deal with.  You may have beneficiaries with disabilities or special needs on your inheritance list.  There are many other factors that can enter into the equation that require very specific actions.

Since most families are unique the best way to ensure that your estate plan properly addresses your situtaiton is to discuss it with a qualified Reno estate planning lawyer.  Once he gains an understanding of your wishes and evaluates your circumstances he can recommend a course of action that is carefully crafted for your needs.

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

When you create a trust, one of the most important decisions you must make is who to appoint to succeed you as your trustee. Although each trust is unique, there are some basic considerations that you may wish to take into account before making a decision regarding the appointment of a trustee.

• The Purpose and Complexity of The Trust: Trusts come in numerous forms and are created for a wide variety of reasons. A trust may be rather simple, such as a trust that is created solely for the purpose of providing funds to care for a pet after the death of the maker of the trust. On the other hand, a trust may be extremely complex, such as a trust created to manage and distribute a large estate after the death of the maker. A trust with a simple purpose does not require as much from the trustee as a complex trust does.
• Location of Trust Assets: The trustee is responsible for all trust assets for the lifetime of the trust. Where the trust assets are located is an important consideration. It is sometimes helpful if the trustee is located near the assets in order to more effectively manage the assets. With today’s electronic communications, however, this is not as great a factor.
• Relationship of the Trustee to the Beneficiaries: Does the potential trustee have any financial interest in the trust itself or a direct relationship to the financial interest of a beneficiary? Does the potential trustee have an obvious or potential conflict of interest with any of the beneficiaries? If so, you may wish to reconsider selecting this potential trustee.
• Financial Ability and Experience: The trustee has numerous duties to both the assets of the trust itself and the beneficiaries. Depending on the size of the trust, managing the trust assets may require a high level of financial ability and experience. Be certain the person you appoint has the experience and the ability to handle the position or to manage the experts who will take care of the technical matters.

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

Owning a dog is rewarding in a number of different ways, and for seniors a dog could provide a very welcome companion at a time when loneliness can be an issue. There is no replacing your family of course, but for many people, dogs are indeed man’s best friend.  You may find that a canine in the household will uplift your mood and perhaps even provide you with protection.

If you are a dog owner you should consider who would be caring for your pet if you were to pass away before the animal. This is obviously a serious consideration for senior citizens who own pets, but it is also important for anyone who owns an animal just as a precaution because life is uncertain at any age.

Your first task is going to be choosing a capable caretaker. It is very possible that a particular person will immediately come to mind. You may have a friend or family member that knows the pet well and who already has somewhat of a relationship with the animal.

Once you determine who would become the pet’s caretaker in the event of your death you have to consider the financial side of things. You can provide financial resources to the caretaker by giving this individual a direct inheritance earmarked for the pet’s care.  A better option, however, would be to create a pet trust for the benefit of your dog. Doing so will keep your pet from becoming a burden to those left to care for it.

If you have any questions about pet planning, simply take a moment to arrange for a consultation with a good Northern Nevada estate planning lawyer.

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

Statistics tell us that only around half of Americans have any type of estate plan in place. Going through life without an estate plan is taking a risk that can easily be eliminated.  If you need some motivation, simply envision where your family would be if you were to pass away today.  When you make plans for all contingencies you are protecting those that you love.

If however you deceased without an estate plan in place the intestacy rules of succession would apply. “Dying intestate” means dying without having executed a valid last will.  There are those who understand that there are intestacy laws of succession.  They may not take estate planning very seriously because they assume that their next of kin will inherit their estate.  This could be a crucial mistake.  You may be shocked who would actually inherit your estate under the laws of intestacy.

The estate will be administered under the jurisdiction of the probate court if you die intestate.  Tthe probate process can be extremely time-consuming, expensive and public in nature.  Also, iterested parties can delay the process with objections and creditor claims.

The fact of the matter is that estate planning is not optional if you truly care about the well-being of your family.  If you are currently unprepared now would be a good time to take action and arrange for a consultation with a good Reno Estate Planning attorney.

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