Modernizing an Outdated Estate Plan

Posted on by cguske

 

 

 

 

 

What to do with a Confusing, Old Trust
Estate plans evolve. Or at least they should. Any plan that fails to achieve your goals and doesn’t match your current financial and family circumstances is out of date and is in need of an overhaul. We can help you revitalize the obsolete aspects of your plan and get you back on track for the future.

How to know if you have an outdated trust
If you or anyone you know signed a will or trust in 2012 or before, an immediate review should be on your to-do list. There have been many legal and policy changes since 2012, and your documents may not work as well as they could.

If you signed your will or trust after 2013 and it’s been more than a year since we talked, now is the time to make sure your plan still meets your needs and avoids confusion along with needless complexity, costs, and taxes.

You may also be the beneficiary of a deceased loved one’s will or trust. These older trusts left by a parent or grandparent can often benefit from a “remodel” or modernization.

Quality estate planning is an ongoing process
Like investment or financial planning, tax planning, health and fitness, and so many other aspects of life, proper estate planning is an ongoing process that you must revisit regularly. We make it our business to keep up with the latest developments in legislation and know how to make changes to your plans to avoid risks and seize opportunities. But, we need your help and your engagement in the process to help you avoid the negative consequences of outdated or obsolete planning.

You are not trapped by old plans, even when they’re “irrevocable.”
Now that you are aware of an outdated trust posing a potential risk to your family’s long-term well-being, we can work with you to restate or amend your revocable trust or will. This is a straightforward solution that can update and modernize your trusts and make them ready for the current realities of the legal and financial landscape we live in today.

Many of you probably have an irrevocable trust of some kind as well, an inheritance from a parent or grandparent or even one you made yourself. There are more boundaries and modernization is a more involved process for an irrevocable trust, but we have an array of tools (decanting, trust protector restatement, judicial modification, or non-judicial settlement) at our disposal to “remodel” or modernize an existing irrevocable trust. You’ve probably heard about decanting. It is an increasingly popular option and borrows its name from the decanting process used for wine. Just as you can decant wine by pouring it from its original bottle into a new bottle, leaving the unwanted sediment in the original bottle, you can pour the assets from one trust into a new trust, leaving the unwanted terms in the original trust.

Just as there are many ways to remodel a home, there are many strategies and legal tools that can be used to modernize old estate plans. Since each plan is unique, the way to update it will be as well. Coming up with the most effective strategy requires careful consideration of your current goals and needs, as well as your tolerance for risk.

Even though there is no way to know for sure what to do until some analysis is complete, it’s better to have an informed choice rather than acting upon the assumption that your plan will work as intended, especially if it hasn’t been professionally reviewed. These are complex legal processes, and there is no one-size-fits-all answer.

We want you to have the best possible plan for your family. Since you and your circumstances are unique, give us a call today and let’s explore the options. We look forward to hearing from you.

View the AIA Virginia Benefits Package

Rob Smith
Chartwell Capital Advisors
Robert C. Smith, PLC
The Branch House
2501 Monument Avenue
Richmond, Virginia 23220
(804) 357-5977
rsmith@chartwellcapital.net

This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional advisors to evaluate or pursue tax, accounting, financial, or legal planning strategies.

Thanks a Million!

Posted on by cguske

The “selfie” video above is VERY low production costs, but the content can literally save you a million dollars. In addition to all the other work we do, we appraise existing life insurance policies. As in the example in the video, a client was counting on $1 million flowing into a trust we created from an existing life insurance carrier. The problem was the carrier is no longer in the life insurance business, its financials have degraded and the policy was likely going to expire long before the client died. We took the cash value of the policy, got him a new policy with a strong carrier with better investment returns and put a long term care rider on the policy. Had we not done this work, the $ 1 million dollars he was expecting likely would not have happened.

Reviewing and analyzing life insurance is often akin to finding buried treasure in the backyard. It costs you nothing, but the extra money “found” can be a pot of gold for your family. All existing life insurance policies should be appraised. We do this a complementary service for all AIA Virginia members.

On another note, we recently procured a professional liability insurance policy for an AIA Virginia member firm. We were told by this firm that they had priced this product out for many years, and our price and terms were the best they had ever seen. If you want us to review your existing professional liability insurance, give us a call or email us.

Finally on the legal front.

Modernizing an Outdated Estate Plan

What to do with a Confusing, Old Trust
Estate plans evolve. Or at least they should. Any plan that fails to achieve your goals and doesn’t match your current financial and family circumstances is out of date and is in need of an overhaul. We can help you revitalize the obsolete aspects of your plan and get you back on track for the future.

How to know if you have an outdated trust
If you or anyone you know signed a will or trust in 2012 or before, an immediate review should be on your to-do list. There have been many legal and policy changes since 2012, and your documents may not work as well as they could. If you signed your will or trust after 2013 and it’s been more than a year since we talked, now is the time to make sure your plan still meets your needs and avoids confusion along with needless complexity, costs, and taxes. You may also be the beneficiary of a deceased loved one’s will or trust. These older trusts left by a parent or grandparent can often benefit from a “remodel” or modernization.

Quality estate planning is an ongoing process
Like investment or financial planning, tax planning, health and fitness, and so many other aspects of life, proper estate planning is an ongoing process that you must revisit regularly. We make it our business to keep up with the latest developments in legislation and know how to make changes to your plans to avoid risks and seize opportunities. But, we need your help and your engagement in the process to help you avoid the negative consequences of outdated or obsolete planning.

You are not trapped by old plans, even when they’re “irrevocable.”
Now that you are aware of an outdated trust posing a potential risk to your family’s long-term well-being, we can work with you to restate or amend your revocable trust or will. This is a straightforward solution that can update and modernize your trusts and make them ready for the current realities of the legal and financial landscape we live in today.

Many of you probably have an irrevocable trust of some kind as well, an inheritance from a parent or grandparent or even one you made yourself. There are more boundaries and modernization is a more involved process for an irrevocable trust, but we have an array of tools (decanting, trust protector restatement, judicial modification, or non-judicial settlement) at our disposal to “remodel” or modernize an existing irrevocable trust. You’ve probably heard about decanting. It is an increasingly popular option and borrows its name from the decanting process used for wine. Just as you can decant wine by pouring it from its original bottle into a new bottle, leaving the unwanted sediment in the original bottle, you can pour the assets from one trust into a new trust, leaving the unwanted terms in the original trust.

Just as there are many ways to remodel a home, there are many strategies and legal tools that can be used to modernize old estate plans. Since each plan is unique, the way to update it will be as well. Coming up with the most effective strategy requires careful consideration of your current goals and needs, as well as your tolerance for risk.

Even though there is no way to know for sure what to do until some analysis is complete, it’s better to have an informed choice rather than acting upon the assumption that your plan will work as intended, especially if it hasn’t been professionally reviewed. These are complex legal processes, and there is no one-size-fits-all answer.

We want you to have the best possible plan for your family. Since you and your circumstances are unique, give us a call today and let’s explore the options. We look forward to hearing from you.

View the AIA Virginia Benefits Package

Rob Smith
Chartwell Capital Advisors
Robert C. Smith, PLC
The Branch House
2501 Monument Avenue
Richmond, Virginia 23220
(804) 357-5977
rsmith@chartwellcapital.net

More than just a law firm. We provide legal and financial services to businesses and wealthy individuals. We are problem solvers and opportunity seekers. We deliver and manage a wide variety of professional services for our clients. Once we identify your needs, we offer state of the art financial products to allow our clients to build and retain wealth and reduce risks. We either provide or broker/manage: legal, accounting, financial and real estate advisory services through our “best in the industry” model that allows our clients to receive outstanding professional services at competitive and fair prices.

This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional advisors to evaluate or pursue tax, accounting, financial, or legal planning strategies.

Estate Plans and Life Insurance Review

Posted on by cguske

In case you didn’t get a chance to review this information last month, here it is again. We want to help you too! This past month we revamped the healthcare and retirement benefits for a firm of 150 employees. Please give us a call.

Recently we were interviewed on Channel 12  in Richmond, see interview below:

As noted in the interview, we helped an “Average Joe” save hundreds of thousands of dollars. We did a complete estate plan and then reviewed an old life insurance policy and for the same amount of money, we DOUBLED his death benefit, but also allowed him to use this death benefit amount for Long Term Care, should he need it. Between the cost savings of the estate planning, life insurance, and long-term care, this was a WIN-WIN-WIN.

A great place to start with us …

As you know, we do all of the functions below, but a great place to start with us is estate plan and life insurance reviews. This is a complimentary service we give to AIA Virginia members.

  • Financial Planning Issues
  • Legal Advice
  • Health Insurance
  • Property and Casualty Insurance ( even auto and homeowners)
  • Life, Long Term Care, Annuities and Retirement Plans
  • Ancillary Benefits, like Dental, Vision, Tele-doc, Pharmacy, etc.

For more information on various topics, see our social media:

Newsletters>>
Blogs>>
Website>>
Facebook>>
Instagram>>
LinkedIn>>

Please feel free to contact us for any reason.
View AIA Virginia Benefits Package

Rob Smith
Chartwell Capital Advisors
Robert C. Smith, PLC
The Branch House
2501 Monument Avenue
Richmond, Virginia 23220
804-357-5977
rsmith@chartwellcapital.net

Have Your Reviewed Your Policy Lately?

Posted on by cguske

from Robert C. Smith, PLC, Chartwell Capital Advisors

Robert (Rob) Coleman Smith

As lawyers and advisors, we strongly believe in proper business succession and estate planning, and the proper use of life insurance to fund these needs. Great wealth can be created and preserved through smart legal counseling and discipline. For many reasons, existing life insurance policies should be reviewed annually. Just today, one of our major carriers lowered its pricing. We offer free reviews and comprehensive evaluations of existing policies for all AIA members. Often times, these policies can be replaced with price, terms, and benefits that are simply better.

BRAVE NEW WORLD
Over the past few years, traditional life insurance has undergone a metamorphosis. Life insurance has become an extremely flexible investment vehicle:

  • Its purchasing power has never been greater,
  • New dynamic policies can be used for LONG TERM CARE, RETIREMENT or DEATH BENEFIT needs.
  • Retirement Distributions are tax-free.
  • Long Term Care Distributions are tax-free.
  • Death benefits are income tax-free.

If you live to be 65, there is an 85 % likelihood that you will need long-term care assistance. In the past, if you had long term care insurance and didn’t need it, all of these premiums were wasted. This is no longer the case, as there are now products where an insured can decide to cancel his long-term care policy and get back almost all of the premiums paid. There are other products where the insured can choose to use his policy for long-term care needs, retirement needs or death benefit needs based on future events. There is a product where a very highly rated financial firm will guarantee a return on the cash value of your policy, but also allow it to grow up to 12%. Over a period of time these policies can build up a significant cash value; this money can be withdrawn income tax-free to pay for retirement. If you don’t need the money, the death benefit grows significantly. Death benefits are also income tax-free. One of my favorite planning tools is to use life insurance as a way to fund a DYNASTY TRUST, which is a trust that can be used for future generations and NEVER pay estate taxes. This is how the Kennedy family retained all of its wealth into future generations, but you don’t have to be a Kennedy to create such a vehicle if the funding is done by leveraging the power of life insurance.

Shortly, we will be rolling out an “Instant Estate” program for AIA members where a young AIA member can fund a trust with convertible term life insurance. We recently formed one where the financial contribution for a $2 million term policy for a 28-year-old was only $68/month. Over time this policy can be converted as the insured’s income rises funding a very substantial retirement account with a large death benefit and long term care protection.

To take advantage of our comprehensive life insurance review program, just contact me at:

Robert C. Smith, PLC, rsmith@chartwellcapital.net
Chartwell Capital Advisors
The Branch House
2501 Monument Avenue
Richmond Virginia 23220
804-357-5977

More than just a law firm. We provide legal and financial services to businesses and wealthy individuals. We are problem solvers and opportunity seekers. We deliver and manage a wide variety of professional services for our clients. Once we identify your needs, we offer state of the art financial products to allow our clients to build and retain wealth and reduce risks. We either provide or broker/manage: legal, accounting, financial and real estate advisory services through our “best in the industry” model that allows our clients to receive outstanding professional services at competitive and fair prices.

9 Financial Resolutions For A Happy New Year

Posted on by cguske

by Robert Smith

Robert (Rob) Coleman Smith

According to a study conducted by Fidelity Investments, 37 percent of Americans considered making at least one finance-based New Year’s resolution for 2016, up from 31 percent in the previous year. Those numbers are likely to increase again this year, especially since we won’t have a Presidential election to focus on during 2017. While many people avoid making New Year’s resolutions for fear that they will only break them, the same study indicated that more than half of people who made financial New Year’s resolutions ended the year in better financial shape than when they began.

To that end, below are 9 financial New Year’s resolutions designed to help you grow your wealth in 2017. Enjoy!

1. Set realistic, reachable financial goals.

If it seems a bit ironic that our first resolution or goal is to have goals, that’s because this is where most people fail at the outset. Either they don’t have specific financial goals in mind, or they set the bar so high that their goals are virtually impossible to reach, causing them to lose heart and give up. Don’t let the perfect be the enemy of the good: Set your benchmarks now.

2. Prepare for changes in the tax laws.

When President-Elect Trump takes office on January 20, 2017, changes in the tax codes will almost certainly follow. If you haven’t already done so, talk to us, your financial advisor, and your tax advisor now to strategize about changes to your estate, financial, and tax plans.

3. Review your investment portfolio.

The beginning of a new year and the last few days of 2016 are good times to take a detailed look at your investments, to see which investments are performing well, which are not, and where to reinvest and diversify.

4. Review and track your income and expenses and look for ways to get your budget under control.

Examine your income and expenses for 2016 so you know your starting point. Then, throughout 2017 pull year-to-date reports so you can identify and correct problem areas before they become out of control. Analyzing your expenses regularly helps you identify when money is being spent on things that have less importance to your long term goals.

5. Look for creative ways to increase income.

If you own or operate a business, are there new strategies you could implement to reach untapped markets or otherwise increase revenue? If you work as an employee, are you due for a raise this year? Do you own any intellectual property you’re not currently exploiting for royalties? Brainstorm, and use your imagination to find additional ways to increase your personal income.

6. Deal firmly with debt.

Debt is dead weight and the interest charges can be an anchor on an otherwise good financial plan. Bite the bullet, and get on a debt reduction or elimination plan in 2017.

7. Review your life insurance coverage.

Your policy may be out of date and not have features now commonly available on insurance policies. Worse yet, you may be underinsured if your family’s financial needs have changed. Put the coverage under the microscope to build an action plan. Once you’ve decided on changes with your insurance advisor, coordinate the beneficiary designation with us, so it completely aligns with your estate planning goals.

8. Review your retirement plan.

If you have a 401(k) or an IRA, how is it performing? Is it time to increase your contributions? Should you roll over to a different plan? If you don’t have a retirement strategy, start now, and get to it. Now’s also a great time to verify that your beneficiary designation coordinates with your estate plan. We’re here to help if you have questions.

9. Plan for your heirs.

If you don’t have a trust, consider working with us to establish one in 2017. If it’s been more than three years since your trust was last looked at, it’s time for a checkup. Are there any life changes (e.g., marriage or divorce) that need to be considered and incorporated into your plan? Even if your assets are modest, a trust prepared by a qualified estate planning attorney can provide privacy for your family as well as protect your heirs and legacy from the IRS, creditors, and court interference.

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki

This quote reminds us of a couple of important concepts: first, wealth doesn’t come without a plan; and second, we don’t accumulate wealth just for ourselves. Make a commitment in 2017 to set solid financial goals and craft an estate plan that successfully passes on your financial legacy to the next generation.

We are here to help. Call today to schedule an appointment to discuss your personal financial goals.

This article is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional advisors to evaluate or pursue tax, accounting, financial, or legal planning strategies.

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Rob Smith and his team are ready to provide individual consulting services to assess your benefit needs in each of the disciplines listed below and find the best products and services to meet those needs. These services are available exclusively to AIA Virginia members to meet your needs as a business, individual, or employee with no obligation to buy.

BENEFITS PLAN PRODUCTS AND SERVICES

Financial Planning Services
Chartwell Capital Advisors will meet with you to discuss your financial security goals and offer strategies for meeting them. Once a plan is crystallized, Chartwell will work with you to execute it by offering an array of financial products: investments, life insurance, annuities, long-term care, income protection, retirement plans, group benefits and more.

Legal Services | AIA Virginia Help Line:
Any member can call and get up to 15 minutes of free consulting services on legal matters related to business or personal estate planning. If legal services are needed, discounted pricing is available exclusively for AIA Virginia members. Services include contracts, design and construction law, estate planning, business formation, business succession and more.

Health Insurance
The Chartwell team can provide a holistic health insurance evaluation and prepare a recommendation for the best health care plan. Since Chartwell doesn’t represent just one carrier, they will identify each participant’s needs and provide personalized individual, business, group and health exchange services.

Commercial and Personal Lines Insurance
Chartwell can price and evaluate commercial insurance for business members including an “AIA Small Firm Package” (professional liability, workers comp, BOP, bonding, umbrella). Homeowners, auto, umbrella and more personal lines are also available as needed.

Ancillary Benefits
Chartwell can connect members with providers for: dental, vision, tele-doc, wellness, supplemental, accident, pharmacy, pet, hospitalization and other specialized benefits.

Download the benefits sheet>>

Contact: Robert (Rob) Coleman Smith
Chartwell Capital Advisors | Robert C. Smith, PLC
2501 Monument Avenue, Richmond, Virginia 23220
(804) 357-5977 | email: rsmith@chartwellcapital.net