What to Do When Someone Dies With a Trust
When you sign an estate planning document such as a revocable living trust or a will, you appoint someone to handle your assets for you. The person you choose to handle things for you is called a “fiduciary.” A “fiduciary” is in a position of great trust and responsibility. A fiduciary named in your document usually has the power to buy, sell and manage assets for you.
FIDUCIARIES IN YOUR ESTATE PLANNING DOCUMENTS
When you sign an estate planning document such as a revocable living trust or a will, you appoint someone to handle your assets for you. The person you choose to handle things for you is called a “fiduciary.” A “fiduciary” is in a position of great trust and responsibility. A fiduciary named in your document usually has the power to buy, sell and manage assets for you.
DURABLE POWER OF ATTORNEY
In my last column, I wrote about the Advance Health-Care Directives which contains a “Power of Attorney for Health Care.” I explained that it is a different document than a Durable Power of Attorney, which is used for financial matters. Every adult should have a...
ADVANCE HEALTH-CARE DIRECTIVES
Everyone should have Advance Health-Care Directives. “Advance Health-Care Directives” are instructions which you are giving now (while you can still make decisions) about how you want doctors and hospitals to take care of you when you can no longer make your own...
HOW TO AVOID PROBATE
In 2020, there was an increase in the United States death rate of 15.9%. COVID-19 related deaths amounted to over 375,000, which accounts for most of that increase (11.3%). With all these extra deaths, many senior citizens and even younger clients are concerned about...
MORE NITTY GRITTY DETAILS OF THE GENERATION SKIPPING aka “LEGACY” TRUST
This month’s column will explain in more detail the potential advantages and disadvantages of generation skipping trusts. A Generation Skipping Trust is a trust that does not end when you pass away. It continues on for one or more generations after your death. It does...
GENERATION SKIPPING TRUST also known as a LEGACY or DYNASTY TRUST
Today, I want to talk about a term that is often misunderstood in estate planning: The Generation Skipping Trust. A generation skipping trust does not mean that the inheritance skips your children and only goes down to the grandchildren—that is the big...
WHAT IS AN A-B TRUST?
For most couples who do not have trusts, if one dies, everything goes to the spouse. If a married couple will have more than $5.49 million of assets (including life insurance death benefits), then having everything go to the spouse could cause an estate tax problem....
THE REVOCABLE LIVING TRUST TRAP
Although a Revocable Living Trust is good for avoiding probate (and for married couples, an A-B Trust can reduce or eliminate estate taxes), it cannot protect your home from nursing home costs. Some years back, the State of Hawaii passed a Medicaid rule: If your home...
UNDERSTANDING REVOCABLE LIVING TRUSTS
Last month we shared information on funding your Revocable Living Trust. This month we decided to go back to the very beginning and explain what a Revocable Trust is and how they started in the first place. What is a Revocable Living Trust? Trusts began in England...
FUNDING YOUR REVOCABLE LIVING TRUST
If you have an existing estate plan, you are probably already familiar with the benefits of creating a Revocable Living Trust. One of the biggest advantages of a Revocable Living Trust is the ability to avoid probate. Probate is a court process when a person dies. ...
What is a Life Well-Lived?
During the past two and a half months of lockdown, I've had a fair amount of time while walking the neighborhood or taking breaks from working at home to ponder life, and I’ve come to some interesting realizations. Here in Hawaii we've been fortunate because COVID-19...
THE SECURE ACT: Big Changes to IRA and 401k Rules
On December 20, 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law by President Trump. The SECURE Act makes some really big changes to the way that retirement accounts must be distributed—especially after the original...
2020 ESTATE PLANNING UPDATE
Happy New Year! Here is the 2020 update on important numbers used in Estate Planning and Medicaid Planning in Hawaii. How much money and property can one have at death without paying estate taxes? At the end of 2017, Congress passed a new tax bill, which the...
INTERNATIONAL ESTATE PLANNING: NON-CITIZEN SPOUSE
Last month I wrote my column on the basics of International Estate Planning. I explained the definitions of US Citizen, Non-resident Alien, and Resident Alien. The definition of a Resident Alien is different for Income Tax purposes than it is for Gift and Estate Tax...
INTERNATIONAL ESTATE PLANNING
The world today is increasingly interconnected. Global travel is commonplace these days, as is moving to another country for work or other opportunities. International marriages are also more commonplace. So, what do these facts have to do with estate planning? All of...
FRAUDULENT STUDENT LOANS AND IDENTITY THEFT
FRAUDULENT STUDENT LOANS AND IDENTITY THEFT By: Ethan R. Okura Sometimes you can do everything right, but have everything go horribly wrong. Sometimes you do nothing at all, and still have everything go very wrong. In the United States, you’re supposed to be innocent...
AUTOMOBILES IN ESTATE PLANNING
Many of my past columns have focused on how to structure your estate plan to protect your home. I’ve discussed protecting your primary residence and other real property from probate through the use of revocable and irrevocable trusts, through joint ownership or...
TENANTS BY THE ENTIRETY FOR PERSONAL PROPERTY
By: Ethan R. Okura Back in December of 2009, my father, Sanford K. Okura, wrote an excellent article titled “Tenants by the Entirety.” It explained the pros and cons of holding property as “tenants by the entirety” as opposed to holding them in revocable trust(s). At...
INCOME TAXES and IRAs
By: Ethan R. Okura It’s that time of year again. No, not Valentine’s Day…and I’m not even talking about President’s Day. I’m talking about Taxes! Your personal income tax return isn’t due until April 15th, and if you’re like many people, you might file for an...
Estate Planning Update 2019
By: Ethan R. Okura Hawai‘i Herald Columnist Happy New Year! The following is a 2019 update on important numbers used in estate planning and Medicaid planning in Hawai‘i. How much money and property can a person have at death without paying estate taxes? At the end of...
WRAPPING UP YOUR ESTATE PLAN
By: Ethan R. Okura Happy Holidays! This is the time of the year when we make an extra effort to be thankful for all that we have. We focus on the spirit of giving and we wrap up presents for our family and loved ones. This thought made me chuckle a little at a recent...
RETIREMENT SAVINGS AND NEW CONTRIBUTION LIMITS – An Overview to Help You Prepare for 2019
By: Ethan R. Okura There’s no question about it: Saving for retirement is not easy. There are quite a few types of retirement accounts. Each has its own rules and tax benefits, although, for the most part, they tend to be similar. The amounts you can contribute,...
The Role of the Successor Trustee: What Am I Supposed to Do Now?
The Role of the Successor Trustee: What Am I Supposed to Do Now? By Ethan R. Okura We have often seen this scenario: A parent, sibling, or dear friend has finally gotten around to doing their initial estate planning. You are so happy for them. And then you...
Aretha Franklin: Following in Prince’s Footsteps to Pay Millions in Death Taxes
Aretha Franklin: Following in Prince’s Footsteps to Pay Millions in Death Taxes By Ethan R. Okura A little over two years ago I wrote about Prince, the music recording legend, and how he passed away without a will. I detailed some of the problems that his...
“UNDUE INFLUENCE” AND OTHER WILL PROBLEMS
“UNDUE INFLUENCE” AND OTHER WILL PROBLEMS By: Ethan R. Okura In previous columns, I have addressed the subject of financial abuse of the elderly. This usually involves outright stealing or fraud. However, there is another form of financial abuse that is...
An Ethical Will: The Importance of Passing Down Your Values, Not Just Your Assets
An Ethical Will: The Importance of Passing Down Your Values, Not Just Your Assets By Ethan R. Okura Have you heard the proverb “Shirtsleeves to Shirtsleeves in Three Generations?” Or perhaps you’ve heard the saying as “Rags to Riches to Rags in Three...
How To Apply For Long-Term Care Medicaid
In last month’s column, I focused on the history of Medicaid and discussed some of the difficulties that arise when dealing with Medicaid’s many laws, rules and policies. I also told you about some of the problems that people have encountered when applying for...
Applying For Long Term Care Medicaid: Can You Do It On Your Own?
Applying For Long Term Care Medicaid: Can You Do It On Your Own? By Ethan R. Okura Medicaid was created in 1965 as Title XIX of the Social Security Act, alongside Medicare, which was Title XVIII of the Act, under President Lyndon B. Johnson. Medicaid is a joint...
LEGISLATIVE UPDATE: NEW DEATH WITH DIGNITY LAW PASSED
Legislative Update: New Death With Dignity Law Passed By Ethan R. Okura Recently, the Hawaii State Legislature passed a bill that gives terminally ill patients an option to take prescription medication that will cause them to pass away peacefully in their...