Warning! Dangers of Joint Tenancy Ownership. Many clients tell me that they've retitled their assets, especially those intended to pass according to the terms of their living trust, in the name of one or more of their children. Instead of leaving the titles in the name of their trust, they've effectively removed those assets from the trust and titled them jointly with someone else. The effect of this is to cause the asset to pass directly to the surviving joint owner and not to the beneficiaries of their trust. It is important that no title be changed to someone else as a joint owner with you unless you understand this completely, and intend that the asset pass only to the surviving owner. This is one reason why I recommend an annual review to make sure these kinds of inadvertent mistakes don't occur.

One-stop Estate Planning. If you know someone who has an uncomplicated estate and basic planning objectives, call us to discuss "One-stop Estate Planning." Unlike most law firms which require several visits to complete planning, our office can discuss, plan and execute MOST plans at the first visit---all for a cost of one-third the fees charged by other firms. This program is particularly beneficial for young marrieds who can't afford "large firm fees," as well as for anyone desiring comprehensive, efficient and reasonably-priced protection. This is no "bare-bones" plan: All plans include a living trust, pour-over will, financial and medical powers of attorney, complete retitling of assets, our deluxe EstatePlanner Documents Organizer, and complimentary document revisions for one year.

Compare Funeral Costs. Want to compare funeral costs in your area? Go to eFuneral.com for a list of funeral providers near you and a free comparison of their charges. Again, no charge for this service, and your information is kept confidential.

Living Trusts Afford Privacy -- Wills Don't! To be effective, a will must be probated after your death. Because a filed probate is "public record," anyone can obtain a copy of your will and learn how and to whom your estate was distributed. A living trust, however, does not require probate, and thus the details of your estate distribution remain private. Only the trust's beneficiaries are privy to the extent of your assets and who receives them. Whitney Houston, the singer, opted to use a will instead of a living trust; her will, including those who have inherited from her, are now "public record," and available on the Internet. One caveat: For maximum privacy, remember that only those assets titled in the name of the trust are private and subject to its terms.

Missing Money! Here's a FREE website that allows you to search for unclaimed money or assets that may be owing to you or those you know. There is no charge for this service and it IS legitimate. Missingmoney.com

Insurance Companies No Longer Offering Long-term Care Insurance. . . What to do? Excellent article on protecting yourself and your estate from the high costs of long-term care: http://online.wsj.com/article/SB10001424052970203961204577269842991276650.html?mod=googlenews_wsj

Estate Tax Exclusion Scheduled to be Reduced on January 1, 2013. Currently, the federal estate tax exemption (the amount an individual can pass to his or her heirs free of estate tax) is $5,000,000. However, under current law, that exclusion amount is scheduled to reduce to $1,000,000 on Jan. 1, 2013. Will Congress act before January 1, 2013 to prevent the scheduled reversion? Although surveys show that most estate planners believe that the $5,000,000 exclusion will remain, it is really impossible to predict the final outcome (and exclusion). That's all the more reason to review and possibly amend our estate plans by the end of 2012. For larger estates worth $1,000,000 or more, it might be wise to implement a "disclaimer provision" amendment, which gives the greatest flexibility to a surviving spouse and still guards against an unexpected estate tax hit. For more information about this timely amendment, please contact us.

Take care with your financial powers of attorney! In 2009, MetLife estimated that $2.6 billion was lost by elders because of fraud committed by those holding their powers of attorney. Assets held in your living trust cannot be controlled by a financial (durable) power of attorney. Only assets held in your sole name can are subject to your power. The best use of a power of attorney is to enable your agent to transfer assets to your living trust if you become disabled, not as an instrument to govern all your financial matters. Once conveyed to your trust, assets can be managed by your successor trustee, without court supervision, if you become disabled.

Download (PDF format) Free Estate Planning Course. Are you confused about the basics of estate planning and want to learn more in an easy-to-read, entertaining format? Download my 172-page course, "How To Avoid Probate, Death Taxes, and Family Civil War!", which explains these important concepts and illustrates them with actual case studies from my 36 years of practice. Cost? NOTHING! This is my "thank you" for visiting my blog! (Call me (801-262-8889) or email me (emarel@comcast.net) for the online link.)

"End of Life" Decisions. It's important to make decisions about the kind of medical care you wish to receive if you are sick or terminally ill, and to name the persons (i.e., "agent") who can make those decisions for you if you are unable to do so. You also may wish to become an organ donor, which can give the "gift of life" to those in need.

If you are a Utah resident, you should complete the new (effective Jan. 1, 2008) Utah Advance Health Care Directive, which replaces both the old Health Care Power of Attorney and Living Will forms previously used. You can find the Directive and instructions for completing it (along with other useful information) at http://aging.utah.edu/utah_coa/directives/index.html. That site also has a very useful Toolkit which I recommend you read and complete before making any decisions. Be sure to print and sign two copies of the Directive; keep one at home and give the other to your family, doctor or attorney for safekeeping.

Utah residents can find information and register as an organ donor, by calling the Utah Donor Registry at 866-YES-UTAH or by visiting www.yesutah.org.

Non-Utah residents can find the legal requirements for their state by visiting www.donatelife.net/CommitToDonation/index.php.

Do You Have Unclaimed Assets? You or your relatives (alive or deceased) may have unclaimed property (i.e., bank accounts, etc.) to which you or a family member are legally entitled. Do a quick check at the following website, which represents state governments throughout the country: http://www.unclaimed.org. Don't forget to enter not only your own name, but the names of deceased relatives (i.e., mother, father, etc.) to search for unclaimed assets. If you discover assets which belong to a deceased relative, our office can help you provide the legal documentation to claim them.

Avoid "Family Civil War!" One of the most common sources for family contention when settling an estate is the distribution of personal effects (i.e., collectibles, family photos, antiques, etc.). Often, a decedent leaves it up to a successor trustee to pass these items to family members in a "fair" manner without designating which specific items should be given to each individual. Years ago, one of my clients died without indicating, in writing, how her two children should divide her furniture and art works. Her children fought over them and paid their lawyers almost $25,000 (!) in legal fees to resolve differences. The items eventually were divided, but relationships were shattered. The easy solution? Write down who is to receive your personal effects, or, at least, the procedure you wish to be followed in distributing them.

Here are some tips to effectively distribute valuables: 1) Talk to each family member privately to find out which items they would most value; 2) designate-in a dated and signed writing-which items should pass to each beneficiary; 3) be sure to specify (especially in the case of more valuable items) whether the gift counts as part of their share of the estate or is in addition to their share; 4) if two or more persons desire the same item (i.e., your piano, grandfather clock, etc.), consider specifying that the item will be distributed based on a family auction (i.e., the highest bidder receives the item and the auction proceeds are divided among all members, etc.); 5) if you leave personal effects to your spouse (and this is especially important in the case of "blended" marriages where each spouse has children from a prior marriage), specify whether your spouse should receive your items outright or merely to use until his or her death or remarriage (remainder to another). Most important (again, very important to do in a "blended" marriage): Be sure to identify which items in your household are yours or your spouse's, to better clarify who has the legal authority to dispose of them.

East budgeting and tracking of your finances. In these uncertain (and turbulent!) economic times, it's even more crucial that we control our finances. One of the most useful sites I've found is MINT.COM. This wonderful site helps you track all your expenditures, set financial goals, reduce your debt, and automatically links all your financial activities to your bank or credit union accounts. One of the site's most useful features is that you can log on and see, in easy-to-understand graphics (i.e., pie charts), where you're spending your money--essential information if you're trying to "stay within budget." The best part? It's absolutely free! Check it out!

When Powers of Attorney Are Not Effective. We recommend that our clients have a General Durable Power of Attorney, naming an agent of their choice to manage their finances and other transactions if they become disabled or incompetent. Clients occasionally tell us, however, that their power of attorney was ineffective to access funds in an account or to sell or transfer real estate or other assets. The reason for this is simple: Your power of attorney only can be used for your personal assets (i.e., assets titled in your name, alone), and will not be effective for assets titled in the name of your Living Trust.

How can your trust assets be managed for you if you become incompetent? Your Successor Trustee (named in your trust) simply executes an Affidavit of Incapacitation acknowledging your incompetence, attaches a letter from your doctor verifying your incapacitation, and presents the Affidavit to each institution where you keep trust assets. Your Successor Trustee, then, can replace your name with his on your trust assets, becoming your trustee, and can manage your trust assets for you without a court hearing or court supervision. If you either don't have a General Durable Power of Attorney, or need it updated, please contact us at (801) 262-8889 or email us at emarel@comcast.net.

Sick of Credit Offers? Visit https://www.optoutprescreen.com/?rf=t to "opt out" of credit card and other credit solicitations. For more information, visit the Federal Trade Commission's web site: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre17.shtm.

Historical Tax Returns. Would you like to see what income tax forms (and tax rates) looked like over the years? Go to: http://www.taxhistory.org/www/website.nsf/Web/1040TaxForms?OpenDocument and click on any year. In particular, examine the (low) tax rates on the 1913 return (and weep!).

Identity Theft Protection Using a "Security Freeze." You can protect yourself against a crook using your stolen personal information, like your Social Security number, to open new accounts in your name. Simply implement a “security freeze,” which “freezes” or locks access to your credit file against anyone trying to open up a new account or to get new credit in your name.

When a security freeze is in place at all three major credit bureaus, an identity thief cannot open a new account because the potential creditor or seller of services will not be able to check your credit file. When you want to apply for credit, you can lift the freeze temporarily using a PIN so legitimate applications for credit or services can be processed. For more information about Utah’s Credit Freeze Law, and how to “freeze” or “unfreeze” your credit information, see: http://www.consumersunion.org/pdf/security/securityUT.pdf

Disinherited by Ademption. I recently met with a woman and her two brothers to settle their mother's estate. In her trust, the mother had provided for a duplex to be given to her daughter, in addition to an equal share of the estate. The mother, however, had sold the duplex before she died.

The daughter asked, "Don't I get an additional share of the estate to compensate me for the loss of the duplex?" Her brothers were adamant: "No," replied one brother. "If Mother wanted you to receive a replacement asset she would have asked Mr. Loveridge to amend her trust to give you a larger portion." Legally, the property was considered adeemed, and the daughter lost her "bonus" duplex. The point? If you dispose of an asset intended for a specific beneficiary, be sure to consider whether to give that beneficiary another asset or a larger share to replace it.

Stop Unwanted Solicitations. Utah provides a free service for Utah residents to protect their e-mail and other electronic addresses from solicitations for certain adult-oriented products and services. Like the Nation Do Not Call List, once a resident registers an address, senders of messages that advertise adult-oriented products or services are required to remove registered addresses from their mailing lists. You can read more about the Utah's do-not-contact list, as well as register online by visiting: http://donotcontact.utah.gov.

Penalty ("in terrorem") Clauses. Occasionally, clients request that I include a provision in their trust disinheriting any beneficiary who contests the trust, brings an action against the trustee, or otherwise, as they put it, "causes trouble" when the estate is settled. Utah law (UCA 75-7-112) provides that any such clause which penalizes a beneficiary for bringing such an action is unenforceable, as long as “probable cause” exists for instituting the proceedings. However, frivolous actions by a beneficiary (or a non-beneficiary) could, indeed, result in a “penalty” being enforced and that beneficiary being disinherited. What is “frivolous?” Good question! Any estate contest should only be considered after obtaining proper advice from a competent estate planning attorney, and not just because you’re dissatisfied with a decedent’s estate plan or your share.