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  • haileywalsh

    Corliss Law Group Estate Planning Tips for People under 40

    3 years agoReply
    It's never too early to start estate planning, and if you already have a family, getting your personal affairs in order is a must. The sooner you start planning, the more prepared you will be for life's unexpected twists and turns.

    The following tips, aimed at those under 40, can help you approach and simplify the estate planning process:

    Start now, regardless of net worth. Estate planning is a crucial process for everyone, regardless of wealth level, says Marc Henn, a certified financial planner and president of Harvest Financial Advisors. "Many people will say, 'Well, I don't have a lot of assets, therefore I don't need an estate plan,'" he says. "Maybe you only have debt, but it still applies. If you want the people around you to appropriately deal with your finances, a plan is still just as important."

    This is especially true if you are responsible for financially dependent individuals, such as young children. "The less you have, the more important every bit you've got is to you and the people you care about," says Lawrence Lehmann, a partner at Lehmann, Norman and Marcus L.C. in New Orleans. "If you don't have much money, you really can't afford to make a mistake."

    Have the "what if?" conversation with friends and family. Before jumping into the estate planning process, it's important to establish exactly what you want, and need, to happen after you die and relay those wishes to those around you.

    "We find that the best transitions and financial transfers happen when all family members are involved in the decision making," says John Sweeney, executive vice president of retirement and investing strategies at Fidelity Investments. "This way, after a loved one is gone, no one is squabbling over a couch or going, 'Why did person A get more than person B?' If wishes are laid out clearly while the individual is living, they can share the rationale behind the decisions."

    Focus on the basic estate plan components. Experts say life insurance, a will, a living will and a durable power of attorney are all important aspects of an estate plan that should be established at the start of the planning process.

    In the event of an untimely death, life insurance can replace lost earnings, which can be especially beneficial for younger individuals, says Bill Kirchick, a partner with Bingham McCutchen law firm in Boston. "Young people can't afford to die," he says. "They are going to lose a source of income if something happens to a young couple and they haven't had enough time to accumulate wealth from earnings to put aside in savings or a retirement plan." Also, the earlier you take out a life insurance policy, the more likely you are to be approved for reduced rates compared to older individuals.

    Utilize estate planning professionals. To draft these basic estate plans, experts recommend carefully selecting a team of professionals who will educate you and draft what you need based on your individual situation. "Don't feel like you have to jump at the first person whose name is given to you," Kirchick says. "I think that people should interview two or more attorneys, accountants, trust officers, financial advisors and so on."

    According to financial planning experts, the average initial cost for the legal drafting of a will, living will and durable power of attorney documentation is between $500 and $1,200, depending on the family size and location.

    Continue to review your plan over time. Finally, your estate plan should never be a "one and done thing," according to Henn. "Every five to seven years, the documents should be readdressed to adapt to significant life events, tax law changes or even the addition of more children," he says. It is also important to keep tabs on your insurance policies and investments, as they all tie into the estate plan and can fluctuate based on the economic environment. If you have to make revisions, Henn says it will cost as much as it did to create the documents in the first place.

    This page: http://money.usnews.com/money/personal-f..

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  • haileywalsh

    Corliss Law Group 4 Cases on how life settlements have bounced back

    3 years agoReply
    We’ve repeatedly said that the life settlement market has improved substantially this year. But the best way to illustrate that is to share the details of some recent cases with you.

    1. $3 million Survivorship UL, wife deceased, male age 90: The policy was originally bought for estate taxes, which due to the American Taxpayer Relief Act (ATRA) of 2012, were no longer a problem for this client. We shopped the policy last year and got an offer of $700,000, but the client decided he would try to maintain the policy. This year he came back to us because he had trouble coming up with the premium payments. Though his life expectancy decreased by only 4 months, a year later we were able to get him $815,000 for the policy, which had a cash surrender value of $246,000. He was thrilled!

    2. $2 million U.L. on female, age 79, with relatively modest health impairments: Life expectancies obtained were 122, 142, and 129 months. The policy had only $43,000 in cash surrender value and the client could no longer afford the premiums. The client received $131,000 in a life settlement.

    3. $500,000 U.L. policy on a male, age 90: The family was running out of money to pay for his long term care in a nursing home. His life expectancies were 36, 36 and 48 months. The client received $217,000 for a policy with no cash surrender value, which gave everyone comfort that he would be able to continue to receive care at his existing facility.

    4. $4 million Survivorship U.L., husband deceased, female age 82: Life expectancies were 102 and 134 months. Changes in the estate tax law eliminated her need for this insurance. $575,000 was received for this policy,which had a cash surrender value of $168,000.

    All these policies were about to be lapsed or surrendered. And, as you can see, a life settlement was a far better solution. Look at the meaningful difference that the additional cash made to these policy owners.

    When you hear that your clients have policies that they no longer need, want or can afford, you owe it to them to explore the life settlement alternative. Remember, it can’t hurt to try ─ it can only hurt not to! And the timing for trying today is better than it has been in years!

    Click site: lifehealthpro.com/2014/08/04/4-cases-tha..

    Discover More: http://corlisslawgroup.com
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