Learn from Prince’s Mistakes: Don’t Let it (Purple) Rain on Your Estate Plans

Learn from Prince’s Mistakes: Don’t Let it (Purple) Rain on Your Estate Plans

When I read that Prince failed to leave a will or any known estate planning documents, I was shocked.  The musician, who was notoriously hands-on with his music and its management, failed to prepare a plan for what would happen after his death. Prince left behind an estate estimated to exceed $300 million.  While most of us will never accumulate that much money, we can still learn from Prince’s mistakes.

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Five Reasons Why Living Trusts are not for Everyone.

Five Reasons Why Living Trusts are not for Everyone.

One of the most common things I hear from my estate planning clients is that they want to “avoid probate.”  So, I’ve started asking them “why?”  They tell me one of two things: first, they have heard that probate is expensive, or secondly, they don’t know why.  In 1965, Norman F. Dacey published his well-known book How to Avoid Probate! Norman F. Dacey, while not an attorney himself, instructs the public to transfer everything they own into a Living Trust using one of the forms in the back of his book. 

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Kentucky Powers of Attorney: A Necessary Planning Tool for End of Life

Unique problems come with aging.  Are your powers-of-attorney meeting your needs? What should they include and who should draft them? Article orginially published in the KBA's Bench and Bar Magazine.  

By Carolyn L. Kenton & Amy E. Dougherty, BLUEGRASS ELDERLAW, PLLC
      Robert L. McClelland, McCLELLAND AND ASSOC.
      Monica M. McFarlin, Esq.

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Inter-vivos Gifting: What Our Clients Need to Know

Inter-vivos Gifting: What Our Clients Need to Know

Inter vivos gifting should feature prominently in the estate plans for our middle class clients who may have accumulated considerable wealth. The old limits of gifting $10,000 (now $14,000) to each family member every year is not useful if the family’s goals are to transfer wealth without taxation and to protect assets from expenditure for nursing home expenses. Because of changes in the tax code, a person may gift $5.3 million in one transaction and still experience no federal gift tax liability. Kentucky has no gift tax. Middle-class folks won’t ever see the federal limit and should not think of gifting in terms of the annual gift limit. If a person is trying to preserve assets from nursing home expenditures, then large gifts that occur earlier than five years before a person’s need for nursing home assistance is the goal as such gifts will invoke no Medicaid penalty.  However, for clients who have done no planning, and now have a family member residing in a nursing home, inter vivos gifting can still be beneficial. 

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