If you are a philanthropist then you likely wish to include a mechanism to continue giving after your death in your estate plan. A charitable trust is often the perfect estate planning tool to accomplish this goal. Along with allowing you to continue to give to a cause that is dear to you, a charitable trust often offers attractive tax and probate avoidance benefits as well. If you want to combine charitable giving with non-charitable giving, either the charitable lead trust or the charitable remainder trust may be the solution. Both of these split interest trusts offer the ability to provide for both a cause and a loved one.

• Charitable lead trust: A charitable lead trust provides payments to a charity (or more than one) for a specific period of time after which the assets that remain in the trust pass to a non-charitable beneficiary. Often, the lead interest (portion that is paid out to the charity) will qualify for a charitable tax deduction. An example of a lead trust is as follows: You fund a trust with $150,000. The trust terms call for 5% of the trust assets to be paid out to a charity each year for ten years with the remainder interest paid to your children upon termination of the ten year term.
• Charitable remainder trust: A charitable remainder trust works in reverse of how a charitable lead trust operates. Both a charitable and non-charitable beneficiary are designated. The non-charitable beneficiary receives a portion or percentage of the trust for a specified period of time after which the remainder interest passes to the charity. In the above example, assume that the trust terms call for $1,000 to be paid to your son each year for his lifetime. After his death, the remaining trust assets will then pass to the named charity.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

In America we are bombarded with messages about the importance of planning for retirement. The doomsday predictions have most of us worried that no amount of money is adequate to set aside for retirement. As a result, many Americans start planning for retirement early on and put as much aside as much as possible toward the “golden years” fund. Of course planning for your retirement is essential, but over-funding your retirement account can create its own taxing problems. Excess income that is left over at the time of your death could be subject to income and/or estate taxes, resulting in the loss of over half the assets left in your estate upon your death.

Although experts are continuously throwing out figures that tell us how much we will need in order to live comfortably when we reach our golden years, the truth is that it is virtually impossible to know how much your will need. A serious and lengthy illness could drain resources rapidly. On the other hand, you could remain healthy until the day you die and use only a small fraction of what you saved.

Leaving any excess funds to your spouse upon your death avoids incurring estate taxes; however, it then over-funds your spouse’s estate in many cases. The good news is that there are a number of estate planning tools available that can allow you to retain control over your assets while you may still need then and then transfer them to loved ones without subjecting them to the often hefty tax burden incurred by estate tax exposure. The key is to plan early, just as you did for your retirement, by conferring with your estate planning attorney.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

If you are a Millbury resident who is fortunate enough to have acquired what you consider to be a legacy worth leaving behind when you die, then creating a legacy plan is essential. Although we all leave behind a legacy, if you plan ahead, you can determine what that legacy is and how it continues to function long after your death.

Think of legacy planning as an extension of your estate plan. A basic estate plan provides a roadmap for how your wealth will be distributed after your death. A legacy plan adds to your estate plan and allows you to ensure that your wealth will continue to provide for loved ones, family members and even causes that are important to you. Without a thorough legacy plan, a significant portion of your wealth could be lost to taxes or could simply be wasted by poor management on the part of beneficiaries.

Although each Millbury legacy plan will be unique to the individual for which it is created, a legacy plan often makes use of the numerous trust options available to a grantor. For example, you may choose to create a generation skipping trust that provides some income for your children while retaining the principal for your grandchildren. You could also choose to create a charitable trust that can continue to provide funds for a charity that is close to your heart. Instead of simply leaving assets to beneficiaries outright, a legacy plan offers the chance to effectively manage your wealth long after death.

Your legacy plan is what you make of it. It is your chance to make decisions now, while you are still here, that will impact future generations and determine what your legacy will be.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

Blended families have replaced the traditional nuclear family as the norm in America over the last several decades. If you are making plans for a second, or subsequent marriage, you are hardly alone. Blending two existing families comes with a laundry list of concerns and considerations, among them the decision how to approach finances. Aside from any personal, or emotional, feelings you have on the matter, there are some pragmatic and legal considerations that are important when deciding whether or not to join all, or some, or your assets with your new spouse.

One important state specific consideration is whether co-mingling assets will create a marital asset. In some states, for example, co-mingling inherited funds makes them marital assets and no longer your sole asset. You may, therefore, wish to keep family inheritance funds separate. Likewise, be sure to make specific bequests of family heirlooms, or other items earmarked for your children from a previous relationship, in your Last Will and Testament to ensure that they go to the intended beneficiary.

On the other hand, while it is important to protect an inheritance, it may be equally important to ensure that your future spouse have access to funds or assets in order to care for himself or herself as well as any future children you may have together in the event of your untimely death. Converting financial accounts to joint accounts, or payable on death accounts, is a simple way to do this.

By structuring your estate plan properly, you should be able to protect both your previous assets and children, as well as your future husband and subsequent children.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

Legendary singer and actress Whitney Houston was found dead of unknown causes in her Beverly Hills Hilton hotel room where she was staying in anticipation of appearing at the Grammy Awards scheduled for the following day in Los Angeles. While the world began to mourn Houston’s death, sales of anything related to the artist began to soar. Best known for her soulful rendition of the song I Will Always Love You, Houston was once considered to be the darling of the record industry. With a string of chart topping singles in the 90s and a successful cross-over to acting with roles in Waiting to Exhale and The Bodyguard, it appeared as though Houston was poised to have a long and prosperous career. Sadly, a battle with drug and alcohol addiction as well as a tumultuous long-term relationship with singer Bobby Brown seemed to end Houston’s career at a relatively early age. Although the final value of Houston’s estate for probate purposes will be calculated as of the date of Houston’s death, the ultimate value for beneficiary purposes will continue to increase as sales continue to soar.

While it is unlikely that you count a record deal or movie residuals as part of your estate assets, you do likely have estate assets that will continue to grow even after your death. Investment accounts, for example, will increase in value when managed properly. Interest in a business can increase in value exponentially at any time if the business takes off. Intellectual property rights can also turn into a valuable estate asset long after your death as well. Be certain to take assets such as these into account, and the possibility that they will provide long-term income for your estate beneficiaries, when creating your estate plan.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

If you are in the process of creating an Auburn trust, you will need to appoint a trustee for your trust. Whether your trust is a simple pet trust, or a complex generation skipping trust, the choice of trustee is one of the most important aspects of creating your trust. Before making the decision, there are a few factors that you should take into account in order to ensure that you make the right decision.

• Willingness to Serve: Before spending a significant amount of time debating the suitability of a potential trustee, don’t forget to actually ask the person if he or she is willing to serve.
• Location of Trust Assets and Beneficiaries: Some trusts have significant tangible assets as part of the trust funds. If this is the case in your trust, you may wish to select a trustee who is physically located near the assets in order to better facilitate the management of the assets. Close proximity to the beneficiaries can also help with communication between the trustee and the beneficiaries.
• Trust Discretion: If your trust allows the trustee a significant amount of discretion with regard to disbursements to beneficiaries, be sure to select a trustee with sound judgment.
• Relationship of the Trustee to the Beneficiaries: Appointing an unpaid family member can certainly save a significant amount of money in some cases; however, when the trustee has a relationship with the beneficiaries, as is the case when you appoint a family member in many cases, you have the potential for a conflict of interest at some point down the road.
• Financial Ability and Experience: Not all trusts require the trustee to have a significant amount of experience or financial ability; however, if yours does, make sure you choose a trustee that has both.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

If you are one of the many Grafton residents who has created, or is in the process, of creating an estate plan, you may be asking yourself whether or not you should share the details of the plan with anyone, and if so with whom? This is a common question and one that only you, yourself, can ultimately answer. There are, however, some things that you may wish to consider when deciding whether or not to share any of the details of your estate plan with anyone involved in the plan.

• Spouse or Partner: Sharing your estate plan intentions with your spouse or partner may be a good idea if you also share children in common or own significant assets jointly. From a pragmatic angle, it is often difficult to make estate planning decisions without consulting your spouse or partner when you share children or assets. If you share neither children or assets, the need to discuss your estate plan is less prevalent, making it a personal decision.

• Beneficiaries: Typically, there is no real legal or practical reason why you need to discuss details of your estate plan with intended beneficiaries. Doing so may make it easier for them to make any plans as a result of the knowledge; however, it may also cause strife or tension within a family if not all beneficiaries are pleased with the details of your plan.

• Executor/Trustee/Guardian: An executor, trustee or guardian is someone who will take on important responsibilities and duties upon your death. Because of the importance of the appointment, you should consult with the individual prior to making the appointment in the relevant estate document in the event the person is either unable or unwilling to serve in the position.

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

You may have heard the term “spendthrift trust” at some point in time. Understanding how a spendthrift trust operates and what the purpose of one is can help you determine whether or not creating one should be part of your Worcester County estate plan.

All trusts require you, as the grantor, to appoint a trustee, name at least one beneficiary and designate assets to fund the trust. Trusts have become an increasingly attractive component of a Worcester County estate plan, in part because of the wide variety of trusts available for use. Specific purpose trusts allow the grantor to create the trust that works best for his or her specific needs and circumstances. A spendthrift trust, is a specific purpose trust that allows the grantor to retain additional control over the trust assets beyond that which a basic trust provides.

Although the trust terms go a long way toward retaining control over trust assets, once you create a trust and name a beneficiary, the beneficiary gains a legal interest in the trust assets. Unfortunately, this sometimes means that the beneficiary assigns his or her interest as collateral for a loan or loses his or her interest as a result of an unpaid debt.

By adding the appropriate state specific language into a trust you can create a spendthrift trust. The added language serves to prevent the beneficiary from assigning his or her interest to any third party for any reason. In addition, the spendthrift provision prevents a third party from reaching the trust assets as a mechanism to satisfy a debt owed by the beneficiary. Consult

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

As a Webster resident with small children, you have likely contemplated what would happen to your children in the event of your untimely death. You may have a spouse or partner that would be able to care for them if tragedy strikes; however, there are still estate planning steps that you may wish to take to ensure that your children have immediate access to the funds necessary for their care and maintenance.

Many Webster residents make the mistake of counting on a Last Will and testament alone to solve all their estate planning concerns. While a will is certainly a good starting point, when minor children are involved additional steps should be taken as well. In fact, the most important reason to execute a will when you have small children may be simply to nominate a guardian in the event one is needed.

Money or assets left to someone in a will can be held up for months in the legal process known as probate. In order to make assets immediately available to the person who will be responsible for caring for your children, consider converting property and financial accounts to joint accounts or “pay on death” accounts. By doing this, access to the property or funds is immediately available to the caregiver.

In addition, discuss a trust option with your Webster estate planning attorney. A trust can not only avoid the probate process altogether, but provide you with a significant degree of control over the trust assets long after you

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.

As an Uxbridge resident, you may be one of the millions of Americans who consider a family pet to be just that — part of the family. As such, you have likely worried about what will happen to him or her in the event of your death. By creating a pet trust, you can ensure that your beloved family pet will have the financial means necessary to be well cared for long after your death.

A pet trust is no different than any other trust at its core. Just as all trusts, you need to designate a beneficiary. In this case, the beneficiary just happens to be an animal not a human. Next, you need to choose a trustee. The trustee will be responsible for administering the trust, including making payments to the beneficiary. Although the trustee can be the same person who will be responsible for caring for your pet on a day to day basis, you can also appoint a neutral third party such as an attorney. As a practical matter, payments will be made to the person who actually cares for the pet. Finally, you must fund the trust and dictate the specific trust terms.

A pet trust offers both practical and financial advantages over other possible ways to plan for your pet’s care. Although you can simply give money to someone ahead of time or leave money in a will to someone for the care of your pet, both those options may incur gift or estate taxes and relinquish all control over the money. By creating a pet trust, you may avoid gift or estate taxes, create funds that will grow over time and retain a great degree of control over how your pet is cared for even after your death. Consult your Uxbridge estate planning

The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys.