Friday, April 5, 2013
Wednesday, April 3, 2013
Trustees should do more for disabled beneficiary: judge
NEW YORK, Jan 8 (Reuters) - On her final day as Manhattan Surrogate, Kristen Booth Glen issued a "clarion call" for trustees who oversee funds for beneficiaries with mental and physical disabilities, saying they must use trust money to improve the beneficiaries' lives.
In ordering two trustees to account for a multimillion-dollar trust for a severely disabled man referred to in the ruling as Mark, Glen criticized them for failing to take affirmative steps to assess Mark's needs and failing to spend money to improve his life.
"This history, and the legal consequences that flow from it ... should provide a clarion call for all fiduciaries of trusts whose beneficiaries are known to have disabilities," she said in a Dec. 31 decision. "It is not sufficient for the trustees to simply safeguard the Mark Trust's assets; instead, the trustees have a duty to Mark to inquire into his condition and to apply trust income to improving it."
Mark, who has spent most of his adult life in institutional care, was isolated and wholly dependent until a few years ago, when Glen ordered the trustees to hire a care manager to evaluate him, she wrote. Since then, he has gone from a non-communicative, aggressive patient to someone who can manage daily tasks like rinsing dishes and walking for exercise, progress both "extraordinary" and "heartwarming," she wrote.
An experienced estate lawyer, who is identified only by his initials, H.J.P., in the ruling, served as one trustee; Chase Manhattan Bank served as the other.
Even though the trustees had "absolute discretion" to decide how to spend the money, Glen said they abused that discretion by failing to act. As a result, she said, their commissions should be denied or reduced for the period of time during which they took no action.
Bernard Krooks, who was not involved in the case and whose firm Littman Krooks specializes in estate planning, said it was the first case he could recall in which a judge took it upon herself to investigate whether a fiduciary was taking sufficient action. Trustees are now "on notice," he said.
"What's interesting about this case is it imposes an affirmative obligation. If you're appointed a trustee, you can't just sit back and pay the bills -- you have an affirmative obligation to find out where the beneficiary is living, what his or her needs are, and make payments to improve their life," Krooks said.
Mark's mother died of cancer in 2005, leaving behind approximately $10 million to be divided into two trusts, one for Mark and one for his brother, Charles. Before her death, she placed Mark in a residential care facility.
In 2006, H.J.P. applied to become Mark's guardian under Article 17-A of the Surrogate's Court Procedure Act.
H.J.P. submitted assessments from healthcare providers that Mark suffered from autism and severe retardation, engaged in frequent aggressive behaviors and required assistance in daily tasks, according to the decision.
An attorney for Mental Hygiene Legal Services, which represented Mark for the purposes of the application, reported that effective communication with Mark was impossible and that he was non-verbal.
At a hearing on the application in 2007, Glen chastised H.J.P. and Chase for not visiting Mark to ascertain his needs for themselves or spending any money from his trust in the years since his mother's death, according to the ruling.
She told them to hire a certified care manager, who eventually suggested that various items such as electronics and a playground that would help Mark's behavior be purchased with trust money.
In the years since, Glen wrote, Mark has made significant progress. The case, she said, demonstrates that trustees who have discretion to decide whether to spend funds must also take steps to exercise their discretion.
"Courts will intervene not only when the trustee behaves recklessly, but also when the trustee fails to exercise judgment altogether," she wrote. "The trustees abused their discretion by failing to exercise it."
Glen said there was little case law on inactive fiduciaries but cited a 1931 Appellate Division, Fourth Department, decision, In re Van Zandt's Will, in which the court ruled that executors had to approve payments to a needy beneficiary despite having discretion over spending.
"As in Van Zandt, it was not sufficient for the trustees merely to prudently invest the trust corpus and to safeguard its assets," Glen wrote. "Both case law and basic principles of trust administration and fiduciary obligation require the trustees to take appropriate steps to keep abreast of Mark's condition, needs, and quality of life, and to utilize trust assets for his actual benefit."
Roy Carlin, a lawyer for H.J.P., declined to comment. A lawyer representing Chase could not be reached. A Chase spokesman did not have an immediate comment.
The decision ordered the trustees to provide an updated accounting of Mark's trust fund, as well as the other trust fund.
Glen stepped down on Dec. 31 after reaching the mandatory retirement age of 70.
The case is Matter of JP Morgan Chase Bank N.A. (Marie H.), Surrogate Court, New York County, No. 2006-1307.
For H.J.P.: Roy Carlin.
For Chase: Jennifer McCarthy of Davidson, Dawson & Clark.
In ordering two trustees to account for a multimillion-dollar trust for a severely disabled man referred to in the ruling as Mark, Glen criticized them for failing to take affirmative steps to assess Mark's needs and failing to spend money to improve his life.
"This history, and the legal consequences that flow from it ... should provide a clarion call for all fiduciaries of trusts whose beneficiaries are known to have disabilities," she said in a Dec. 31 decision. "It is not sufficient for the trustees to simply safeguard the Mark Trust's assets; instead, the trustees have a duty to Mark to inquire into his condition and to apply trust income to improving it."
Mark, who has spent most of his adult life in institutional care, was isolated and wholly dependent until a few years ago, when Glen ordered the trustees to hire a care manager to evaluate him, she wrote. Since then, he has gone from a non-communicative, aggressive patient to someone who can manage daily tasks like rinsing dishes and walking for exercise, progress both "extraordinary" and "heartwarming," she wrote.
An experienced estate lawyer, who is identified only by his initials, H.J.P., in the ruling, served as one trustee; Chase Manhattan Bank served as the other.
Even though the trustees had "absolute discretion" to decide how to spend the money, Glen said they abused that discretion by failing to act. As a result, she said, their commissions should be denied or reduced for the period of time during which they took no action.
Bernard Krooks, who was not involved in the case and whose firm Littman Krooks specializes in estate planning, said it was the first case he could recall in which a judge took it upon herself to investigate whether a fiduciary was taking sufficient action. Trustees are now "on notice," he said.
"What's interesting about this case is it imposes an affirmative obligation. If you're appointed a trustee, you can't just sit back and pay the bills -- you have an affirmative obligation to find out where the beneficiary is living, what his or her needs are, and make payments to improve their life," Krooks said.
ABUSE OF DISCRETION
Mark's mother died of cancer in 2005, leaving behind approximately $10 million to be divided into two trusts, one for Mark and one for his brother, Charles. Before her death, she placed Mark in a residential care facility.
In 2006, H.J.P. applied to become Mark's guardian under Article 17-A of the Surrogate's Court Procedure Act.
H.J.P. submitted assessments from healthcare providers that Mark suffered from autism and severe retardation, engaged in frequent aggressive behaviors and required assistance in daily tasks, according to the decision.
An attorney for Mental Hygiene Legal Services, which represented Mark for the purposes of the application, reported that effective communication with Mark was impossible and that he was non-verbal.
At a hearing on the application in 2007, Glen chastised H.J.P. and Chase for not visiting Mark to ascertain his needs for themselves or spending any money from his trust in the years since his mother's death, according to the ruling.
She told them to hire a certified care manager, who eventually suggested that various items such as electronics and a playground that would help Mark's behavior be purchased with trust money.
In the years since, Glen wrote, Mark has made significant progress. The case, she said, demonstrates that trustees who have discretion to decide whether to spend funds must also take steps to exercise their discretion.
"Courts will intervene not only when the trustee behaves recklessly, but also when the trustee fails to exercise judgment altogether," she wrote. "The trustees abused their discretion by failing to exercise it."
Glen said there was little case law on inactive fiduciaries but cited a 1931 Appellate Division, Fourth Department, decision, In re Van Zandt's Will, in which the court ruled that executors had to approve payments to a needy beneficiary despite having discretion over spending.
"As in Van Zandt, it was not sufficient for the trustees merely to prudently invest the trust corpus and to safeguard its assets," Glen wrote. "Both case law and basic principles of trust administration and fiduciary obligation require the trustees to take appropriate steps to keep abreast of Mark's condition, needs, and quality of life, and to utilize trust assets for his actual benefit."
Roy Carlin, a lawyer for H.J.P., declined to comment. A lawyer representing Chase could not be reached. A Chase spokesman did not have an immediate comment.
The decision ordered the trustees to provide an updated accounting of Mark's trust fund, as well as the other trust fund.
Glen stepped down on Dec. 31 after reaching the mandatory retirement age of 70.
The case is Matter of JP Morgan Chase Bank N.A. (Marie H.), Surrogate Court, New York County, No. 2006-1307.
For H.J.P.: Roy Carlin.
For Chase: Jennifer McCarthy of Davidson, Dawson & Clark.
Source: http://newsandinsight.thomsonreuters.com/Legal/News/2013/01_-_January/Trustees_should_do_more_for_disabled_beneficiary__judge/
Monday, April 1, 2013
YOUR PRACTICE: Consoling clients who have 'gifting remorse'
An unexpected tax break for the wealthiest Americans has some of them wondering if they were too generous during the final weeks of 2012.
Last year Americans were able to gift up to $5.12 million tax free to family and friends over a lifetime as part of their estate, an amount separate from the tax-free amount anyone could annually give per person, $13,000 last year.
Most tax advisers and their wealthy clients expected the $5.12 million to drop to $3.5 million or even lower on Jan. 1 - leading to a scramble among the wealthy to make big gifts before the end of 2012.
But, in a surprise to estate planners and lawyers, who scrambled to help clients give money, property and business interests before the clock struck midnight on Dec. 31, the "fiscal cliff" deal, hammered out by the U.S. Congress at year end, retained the $5.12 million exemption level, even tossing in an extra bump to account for inflation.
That made the new year a bit bittersweet, leaving some people with what financial and tax advisers call a case of "gifting remorse." Some wealthy clients have told their advisers they felt they had rushed into giving too much or too soon, decisions made under the then very real threat of leaving heirs with a heavy tax burden down the road.
Clients who want to undo their gifts are probably out of luck, several tax experts said, because in order for them to get the tax benefit in the first place, the gift had to be irrevocable. But for them, advisers say, there's still a solid silver lining - getting estate planning out of the way.
"After they get over the shock ... it was something they should have done regardless," said Leigh Griffith, head of the tax practice group at the Nashville, Tennessee-based law firm Waller.
Among the perks for having made a gift last year: the money is better positioned for heirs, and if it is in a trust, it is protected from creditors and could still potentially be indirectly accessed by the benefactor. And the grantor may have even found a good way to test their heirs' ability to handle a windfall - allowing time to adjust future decisions about whether to give more.
Mary Schmidt, a Boston-based trust and estates lawyer, was mingling at a New Year's Eve party when she found herself comforting a friend who was second-guessing a decision to give away $5 million.
The friend regretted his rush to gift the sum to his children, questioning whether it was necessary. She talked the man down - something more than a few advisers may be doing these days - explaining how the gift would benefit his estate.
The biggest benefit: the wealthy and the gift recipients get more bang for their buck by giving early. Say the client gave 50,000 shares of stock worth $5 million. If the client had waited a few years, and the stock appreciated, he or she wouldn't have been able to gift as many shares, leading to a bigger tax bill later.
- Most people made their gifts via trusts, where the assets are better protected from creditors. So if, say, the giver gets into legal trouble, the gift can't get tied up in a lawsuit.
- Clauses in some trusts give the benefactor some control over the money. For instance, many people took advantage of spousal access trusts, meaning their spouse is a beneficiary of the gift along with other heirs. As long as they remain married and the spouse is alive, the benefactor can indirectly access the money via the funds that flow to their spouse.
- Many trusts also come standard with a "right of substitution clause," so that if a person regrets giving a particular asset, they can replace it with something else of equal value.
That clause may come in handy for Rob Romanoff, managing partner at the Chicago-based law firm Levenfeld Pearlstein, who has a client who wants to undo the $5 million gift he made to his wife and children after the exemption level stayed the same.
Romanoff quickly discovered that the client didn't regret the bulk of the gift, given through a spousal access trust, but instead wanted to regain control of a $75,000 stake in a tech start-up he expects to take off. If the man continues to feel this way, Romanoff will help him take out that stake and replace it with $75,000 in cash or another equivalent asset.
The gifts may also provide benefactors with a glimpse of how well their heirs may one day handle a windfall.
Griffith, the lawyer, worked with a couple last year who were initially reluctant to give several million dollars to their grandchildren, who had never handled such a large sum.
The couple eventually did so, with a twist that could teach the grandchildren some investing lessons. They set up a trust that encourages the grandkids, who are in their late 20s and early 30s, to provide investing recommendations to the trustees. The couple has been getting calls from their grandchildren, asking them for investing advice ever since.
If nothing else, giving in 2012 helped clients focus on the fact that they got this planning out of the way.
"It's nice to have the luxury of the bulk of the planning in place, and now, going forward, to improve upon it," said Jennifer Immel, senior wealth planner at Philadelphia-based PNC Wealth Management.
Last year Americans were able to gift up to $5.12 million tax free to family and friends over a lifetime as part of their estate, an amount separate from the tax-free amount anyone could annually give per person, $13,000 last year.
Most tax advisers and their wealthy clients expected the $5.12 million to drop to $3.5 million or even lower on Jan. 1 - leading to a scramble among the wealthy to make big gifts before the end of 2012.
But, in a surprise to estate planners and lawyers, who scrambled to help clients give money, property and business interests before the clock struck midnight on Dec. 31, the "fiscal cliff" deal, hammered out by the U.S. Congress at year end, retained the $5.12 million exemption level, even tossing in an extra bump to account for inflation.
That made the new year a bit bittersweet, leaving some people with what financial and tax advisers call a case of "gifting remorse." Some wealthy clients have told their advisers they felt they had rushed into giving too much or too soon, decisions made under the then very real threat of leaving heirs with a heavy tax burden down the road.
Clients who want to undo their gifts are probably out of luck, several tax experts said, because in order for them to get the tax benefit in the first place, the gift had to be irrevocable. But for them, advisers say, there's still a solid silver lining - getting estate planning out of the way.
"After they get over the shock ... it was something they should have done regardless," said Leigh Griffith, head of the tax practice group at the Nashville, Tennessee-based law firm Waller.
Among the perks for having made a gift last year: the money is better positioned for heirs, and if it is in a trust, it is protected from creditors and could still potentially be indirectly accessed by the benefactor. And the grantor may have even found a good way to test their heirs' ability to handle a windfall - allowing time to adjust future decisions about whether to give more.
THE BRIGHT SIDE
Mary Schmidt, a Boston-based trust and estates lawyer, was mingling at a New Year's Eve party when she found herself comforting a friend who was second-guessing a decision to give away $5 million.
The friend regretted his rush to gift the sum to his children, questioning whether it was necessary. She talked the man down - something more than a few advisers may be doing these days - explaining how the gift would benefit his estate.
The biggest benefit: the wealthy and the gift recipients get more bang for their buck by giving early. Say the client gave 50,000 shares of stock worth $5 million. If the client had waited a few years, and the stock appreciated, he or she wouldn't have been able to gift as many shares, leading to a bigger tax bill later.
A few other benefits:
- Most people made their gifts via trusts, where the assets are better protected from creditors. So if, say, the giver gets into legal trouble, the gift can't get tied up in a lawsuit.
- Clauses in some trusts give the benefactor some control over the money. For instance, many people took advantage of spousal access trusts, meaning their spouse is a beneficiary of the gift along with other heirs. As long as they remain married and the spouse is alive, the benefactor can indirectly access the money via the funds that flow to their spouse.
- Many trusts also come standard with a "right of substitution clause," so that if a person regrets giving a particular asset, they can replace it with something else of equal value.
That clause may come in handy for Rob Romanoff, managing partner at the Chicago-based law firm Levenfeld Pearlstein, who has a client who wants to undo the $5 million gift he made to his wife and children after the exemption level stayed the same.
Romanoff quickly discovered that the client didn't regret the bulk of the gift, given through a spousal access trust, but instead wanted to regain control of a $75,000 stake in a tech start-up he expects to take off. If the man continues to feel this way, Romanoff will help him take out that stake and replace it with $75,000 in cash or another equivalent asset.
FRINGE BENEFITS
The gifts may also provide benefactors with a glimpse of how well their heirs may one day handle a windfall.
Griffith, the lawyer, worked with a couple last year who were initially reluctant to give several million dollars to their grandchildren, who had never handled such a large sum.
The couple eventually did so, with a twist that could teach the grandchildren some investing lessons. They set up a trust that encourages the grandkids, who are in their late 20s and early 30s, to provide investing recommendations to the trustees. The couple has been getting calls from their grandchildren, asking them for investing advice ever since.
If nothing else, giving in 2012 helped clients focus on the fact that they got this planning out of the way.
"It's nice to have the luxury of the bulk of the planning in place, and now, going forward, to improve upon it," said Jennifer Immel, senior wealth planner at Philadelphia-based PNC Wealth Management.
Thursday, March 28, 2013
Where you can go wrong with a do-it-yourself will
It is possible to write a will all by yourself - type up on a piece of paper detailed instructions on the distribution of your worldly goods after your death, without the help of an attorney. But if you are planning anything complicated, this might have all the authority of a grocery list that has been notarized.
"I've seen a lot of wills that aren't executed properly," said Danielle Mayoras, an estate planner and the co-author of "Trial & Heirs: Famous Fortune Fights!" "I'm not saying you have to pay top dollar (for a lawyer), but people often leave simple things out."
And when there are mistakes, it is possible that the survivors of the deceased will end up in court, spending thousands of dollars to contest a will.
Another complication is that each state has its own rules. "There isn't a pat answer I can give anyone, that 'here's what it takes to write your own will,'" said Bill McLoughlin, an estate planning attorney and business law professor at Otterbein University in Westerville, Ohio. "Some states recognize oral wills; some don't. In some states, you have to have the will signed at the end and witnessed by two disinterested parties. But some states require three signatures. "
Even if no one contests your will, the courts still have to follow the letter of the law. Many courts will not validate provisions if the will is not properly executed (with the proper notarization and number of witnesses). Courts will also balk at provisions that do not make sense. Even uncontested wills can remain in expensive probate limbo, said McLoughlin.
Because of the disparate nature of do-it-yourself projects, there are no aggregate statistics on how many people across the country file their own wills each year. But in 2012, Rocket Lawyer, one of the two most popular online legal sites, had 913,000 users draft wills. LegalZoom.com Inc, the other top site, logged 100,000 wills in 2011.
Estate planners, not surprisingly, say that DIY legal software programs and online sites are inadequate for consumers' needs. "It would be like me doing a tune-up on my car when I'm not a mechanic," said Mark Doyle, an estate planner in Irvine, California.
But even the online sites tout the value of bringing in a lawyer when things get more complex than directly handing down all your assets to your only living relative.
Rocket Lawyer will introduce consumers to local attorneys at discounted rates. Robert Perez, a lawyer in Magnolia, Texas, who lists his services on the website, said that consumers should have an attorney review any do-it-yourself will, "just to be on the safe side."
Chas Rampenthal, the general counsel for LegalZoom, said that the site has a plan where customers can pay a tiered pricing of $11.99 to $14.99 a month, allowing unlimited monthly consultations for a lawyer to review a will.
1. Naming an executor
Designating a trusted individual to carry out your last wishes is a complicated choice. Whom you choose "is the real linchpin to the proper closing of your estate," said Rampenthal. Do not simply pick someone who cares about you, but someone who either has some financial acumen or knowledge of the law - or better yet, both.
2. Leaving stuff to pets
"If you want to make sure that your pet is taken care of, then don't leave your pet money in your will," warns Rampenthal, who explains that in the eyes of the law, the consumer is then leaving property to property. "Instead, you need to provide for your pet's care through a human." He adds that the individual should be sure to leave the named caretaker with all of the information he or she will need to care for the pet.
3. Putting conditions on heirs to receive payouts
This can lead to problems in court. "Often the conditions aren't spelled out with sufficient clarity," said Rampenthal. Sometimes the courts find the conditions illegal or impractical to enforce. For instance, said Rampenthal, if a parent wants their child to lose 20 pounds or graduate from college before receiving money, "someone has to stick around and make sure that the condition is enforced, and that can mean paying an executor additional fees for a long time."
4. Designating unusual end-of-life decisions
The main problem here, said Perez, is that some consumers confuse wills with living wills. If you put in your will, for instance, that you do not wish to be placed on life support in the event of a medical emergency, that document is not likely to be read until after you die, or possibly when you are in a lengthy coma. By then, it is too late.
5. Designating guardians for children
The failure to fill out a legal document designating a guardian for your children is a common error, say experts, as is not having a backup, in case the first guardian gets sick or dies.
6. Failure to coordinate beneficiary designations
You may have a life insurance policy or retirement account that has a beneficiary named as part of the process. If you have something different listed in the will, what is on the account takes precedence, said McLoughlin. So you may put in your will that you want your best friend's son, whom you always regarded as "family," to receive the funds from your 401(k). But if you die without having designated a beneficiary on the actual account, or have named somebody other than your best friend's son, the money likely will not get to him. The funds will go to the named beneficiary first, and then will follow a hierarchy through your blood relatives.
7. Funeral instructions
This is similar to the living will confusion: Most wills are not found or submitted to probate until after the funeral has taken place, said Rampenthal. If you are going to put your funeral instructions in a will, Rampenthal advises that you alert your executor - the person you name to handle the details of the will.
8. Dealing with blended families
"It probably won't be contentious if the family gets along," said Doyle, but if you know your kids from your second marriage don't think much of your kids from the first, you may want to consider taking inventory and being very clear about who gets what of your belongings.
"People will fight over scarves and jewelry, even though there's no value to them. It isn't the money so much as the principle over it," Doyle said.
"I've seen a lot of wills that aren't executed properly," said Danielle Mayoras, an estate planner and the co-author of "Trial & Heirs: Famous Fortune Fights!" "I'm not saying you have to pay top dollar (for a lawyer), but people often leave simple things out."
And when there are mistakes, it is possible that the survivors of the deceased will end up in court, spending thousands of dollars to contest a will.
Another complication is that each state has its own rules. "There isn't a pat answer I can give anyone, that 'here's what it takes to write your own will,'" said Bill McLoughlin, an estate planning attorney and business law professor at Otterbein University in Westerville, Ohio. "Some states recognize oral wills; some don't. In some states, you have to have the will signed at the end and witnessed by two disinterested parties. But some states require three signatures. "
Even if no one contests your will, the courts still have to follow the letter of the law. Many courts will not validate provisions if the will is not properly executed (with the proper notarization and number of witnesses). Courts will also balk at provisions that do not make sense. Even uncontested wills can remain in expensive probate limbo, said McLoughlin.
Because of the disparate nature of do-it-yourself projects, there are no aggregate statistics on how many people across the country file their own wills each year. But in 2012, Rocket Lawyer, one of the two most popular online legal sites, had 913,000 users draft wills. LegalZoom.com Inc, the other top site, logged 100,000 wills in 2011.
Estate planners, not surprisingly, say that DIY legal software programs and online sites are inadequate for consumers' needs. "It would be like me doing a tune-up on my car when I'm not a mechanic," said Mark Doyle, an estate planner in Irvine, California.
But even the online sites tout the value of bringing in a lawyer when things get more complex than directly handing down all your assets to your only living relative.
Rocket Lawyer will introduce consumers to local attorneys at discounted rates. Robert Perez, a lawyer in Magnolia, Texas, who lists his services on the website, said that consumers should have an attorney review any do-it-yourself will, "just to be on the safe side."
Chas Rampenthal, the general counsel for LegalZoom, said that the site has a plan where customers can pay a tiered pricing of $11.99 to $14.99 a month, allowing unlimited monthly consultations for a lawyer to review a will.
Here is what can go wrong, and how to avoid it:
1. Naming an executor
Designating a trusted individual to carry out your last wishes is a complicated choice. Whom you choose "is the real linchpin to the proper closing of your estate," said Rampenthal. Do not simply pick someone who cares about you, but someone who either has some financial acumen or knowledge of the law - or better yet, both.
2. Leaving stuff to pets
"If you want to make sure that your pet is taken care of, then don't leave your pet money in your will," warns Rampenthal, who explains that in the eyes of the law, the consumer is then leaving property to property. "Instead, you need to provide for your pet's care through a human." He adds that the individual should be sure to leave the named caretaker with all of the information he or she will need to care for the pet.
3. Putting conditions on heirs to receive payouts
This can lead to problems in court. "Often the conditions aren't spelled out with sufficient clarity," said Rampenthal. Sometimes the courts find the conditions illegal or impractical to enforce. For instance, said Rampenthal, if a parent wants their child to lose 20 pounds or graduate from college before receiving money, "someone has to stick around and make sure that the condition is enforced, and that can mean paying an executor additional fees for a long time."
4. Designating unusual end-of-life decisions
The main problem here, said Perez, is that some consumers confuse wills with living wills. If you put in your will, for instance, that you do not wish to be placed on life support in the event of a medical emergency, that document is not likely to be read until after you die, or possibly when you are in a lengthy coma. By then, it is too late.
5. Designating guardians for children
The failure to fill out a legal document designating a guardian for your children is a common error, say experts, as is not having a backup, in case the first guardian gets sick or dies.
6. Failure to coordinate beneficiary designations
You may have a life insurance policy or retirement account that has a beneficiary named as part of the process. If you have something different listed in the will, what is on the account takes precedence, said McLoughlin. So you may put in your will that you want your best friend's son, whom you always regarded as "family," to receive the funds from your 401(k). But if you die without having designated a beneficiary on the actual account, or have named somebody other than your best friend's son, the money likely will not get to him. The funds will go to the named beneficiary first, and then will follow a hierarchy through your blood relatives.
7. Funeral instructions
This is similar to the living will confusion: Most wills are not found or submitted to probate until after the funeral has taken place, said Rampenthal. If you are going to put your funeral instructions in a will, Rampenthal advises that you alert your executor - the person you name to handle the details of the will.
8. Dealing with blended families
"It probably won't be contentious if the family gets along," said Doyle, but if you know your kids from your second marriage don't think much of your kids from the first, you may want to consider taking inventory and being very clear about who gets what of your belongings.
"People will fight over scarves and jewelry, even though there's no value to them. It isn't the money so much as the principle over it," Doyle said.
Thursday, March 21, 2013
22 Things Happy People Do Differently
There are two types of people in the world: those who choose to be happy, and those who choose to be unhappy. Contrary to popular belief, happiness doesn’t come from fame, fortune, other people, or material possessions. Rather, it comes from within.
The richest person in the world could be miserable while a homeless person could be right outside, smiling and content with their life. Happy people are happy because they make themselves happy. They maintain a positive outlook on life and remain at peace with themselves.
The question is: how do they do that?
It’s quite simple. Happy people have good habits that enhance their lives. They
do things differently. Ask any happy person, and they will tell you that they …
1. Don’t hold grudges.
Happy people understand that it’s better to forgive and forget than to let their negative feelings crowd out their positive feelings. Holding a grudge has a lot of detrimental effects on your wellbeing, including increased depression, anxiety, and stress. Why let anyone who has wronged you have power over you? If you let go of all your grudges, you’ll gain a clear conscience and enough energy to enjoy the good things in life.
2. Treat everyone with kindness.
Did you know that it has been scientifically proven that being kind makes you happier? Every time you perform a selfless act, your brain produces serotonin, a hormone that eases tension and lifts your spirits. Not only that, but treating people with love, dignity, and respect also allows you to build stronger relationships.
3. See problems as challenges.
The word “problem” is never part of a happy person’s vocabulary. A problem is viewed as a drawback, a struggle, or an unstable situation while a challenge is viewed as something positive like an opportunity, a task, or a dare. Whenever you face an obstacle, try looking at it as a challenge.
4. Express gratitude for what they already have.
There’s a popular saying that goes something like this: “The happiest people don’t have the best of everything; they just make the best of everything they have.” You will have a deeper sense of contentment if you count your blessings instead of yearning for what you don’t have.
5. Dream big.
People who get into the habit of dreaming big are more likely to accomplish their goals than those who don’t. If you dare to dream big, your mind will put itself in a focused and positive state.
6. Don’t sweat the small stuff.
Happy people ask themselves, “Will this problem matter a year from now?” They understand that life’s too short to get worked up over trivial situations. Letting things roll off your back will definitely put you at ease to enjoy the more important things in life.
7. Speak well of others.
Being nice feels better than being mean. As fun as gossiping is, it usually leaves you feeling guilty and resentful. Saying nice things about other people encourages you to think positive, non-judgmental thoughts.
8. Never make excuses.
Happy people don’t make excuses or blame others for their own failures in life. Instead, they own up to their mistakes and, by doing so, they proactively try to change for the better.
9. Get absorbed into the present.
Happy people don’t dwell on the past or worry about the future. They savor the present. They let themselves get immersed in whatever they’re doing at the moment. Stop and smell the roses.
10. Wake up at the same time every morning.
Have you noticed that a lot of successful people tend to be early risers? Waking up at the same time every morning stabilizes your circadian rhythm, increases productivity, and puts you in a calm and centered state.
11. Avoid social comparison.
Everyone works at his own pace, so why compare yourself to others? If you think you’re better than someone else, you gain an unhealthy sense of superiority. If you think someone else is better than you, you end up feeling bad about yourself. You’ll be happier if you focus on your own progress and praise others on theirs.
12. Choose friends wisely.
Misery loves company. That’s why it’s important to surround yourself with optimistic people who will encourage you to achieve your goals. The more positive energy you have around you, the better you will feel about yourself.
13. Never seek approval from others.
Happy people don’t care what others think of them. They follow their own hearts without letting naysayers discourage them. They understand that it’s impossible to please everyone. Listen to what people have to say, but never seek anyone’s approval but your own.
14. Take the time to listen.
Talk less; listen more. Listening keeps your mind open to others’ wisdoms and outlooks on the world. The more intensely you listen, the quieter your mind gets, and the more content you feel.
15. Nurture social relationships.
A lonely person is a miserable person. Happy people understand how important it is to have strong, healthy relationships. Always take the time to see and talk to your family, friends, or significant other.
16. Meditate.
Meditating silences your mind and helps you find inner peace. You don’t have to be a zen master to pull it off. Happy people know how to silence their minds anywhere and anytime they need to calm their nerves.
17. Eat well.
Junk food makes you sluggish, and it’s difficult to be happy when you’re in that kind of state. Everything you eat directly affects your body’s ability to produce hormones, which will dictate your moods, energy, and mental focus. Be sure to eat foods that will keep your mind and body in good shape.
18. Exercise.
Studies have shown that exercise raises happiness levels just as much as Zoloft does. Exercising also boosts your self-esteem and gives you a higher sense of self-accomplishment.
19. Live minimally.
Happy people rarely keep clutter around the house because they know that extra belongings weigh them down and make them feel overwhelmed and stressed out. Some studies have concluded that Europeans are a lot happier than Americans are, which is interesting because they live in smaller homes, drive simpler cars, and own fewer items.
20. Tell the truth.
Lying stresses you out, corrodes your self-esteem, and makes you unlikeable. The truth will set you free. Being honest improves your mental health and builds others’ trust in you. Always be truthful, and never apologize for it.
21. Establish personal control.
Happy people have the ability to choose their own destinies. They don’t let others tell them how they should live their lives. Being in complete control of one’s own life brings positive feelings and a great sense of self-worth.
22. Accept what cannot be changed.
1. Don’t hold grudges.
Happy people understand that it’s better to forgive and forget than to let their negative feelings crowd out their positive feelings. Holding a grudge has a lot of detrimental effects on your wellbeing, including increased depression, anxiety, and stress. Why let anyone who has wronged you have power over you? If you let go of all your grudges, you’ll gain a clear conscience and enough energy to enjoy the good things in life.
2. Treat everyone with kindness.
Did you know that it has been scientifically proven that being kind makes you happier? Every time you perform a selfless act, your brain produces serotonin, a hormone that eases tension and lifts your spirits. Not only that, but treating people with love, dignity, and respect also allows you to build stronger relationships.
3. See problems as challenges.
The word “problem” is never part of a happy person’s vocabulary. A problem is viewed as a drawback, a struggle, or an unstable situation while a challenge is viewed as something positive like an opportunity, a task, or a dare. Whenever you face an obstacle, try looking at it as a challenge.
4. Express gratitude for what they already have.
There’s a popular saying that goes something like this: “The happiest people don’t have the best of everything; they just make the best of everything they have.” You will have a deeper sense of contentment if you count your blessings instead of yearning for what you don’t have.
5. Dream big.
People who get into the habit of dreaming big are more likely to accomplish their goals than those who don’t. If you dare to dream big, your mind will put itself in a focused and positive state.
6. Don’t sweat the small stuff.
Happy people ask themselves, “Will this problem matter a year from now?” They understand that life’s too short to get worked up over trivial situations. Letting things roll off your back will definitely put you at ease to enjoy the more important things in life.
7. Speak well of others.
Being nice feels better than being mean. As fun as gossiping is, it usually leaves you feeling guilty and resentful. Saying nice things about other people encourages you to think positive, non-judgmental thoughts.
8. Never make excuses.
Happy people don’t make excuses or blame others for their own failures in life. Instead, they own up to their mistakes and, by doing so, they proactively try to change for the better.
9. Get absorbed into the present.
Happy people don’t dwell on the past or worry about the future. They savor the present. They let themselves get immersed in whatever they’re doing at the moment. Stop and smell the roses.
10. Wake up at the same time every morning.
Have you noticed that a lot of successful people tend to be early risers? Waking up at the same time every morning stabilizes your circadian rhythm, increases productivity, and puts you in a calm and centered state.
11. Avoid social comparison.
Everyone works at his own pace, so why compare yourself to others? If you think you’re better than someone else, you gain an unhealthy sense of superiority. If you think someone else is better than you, you end up feeling bad about yourself. You’ll be happier if you focus on your own progress and praise others on theirs.
12. Choose friends wisely.
Misery loves company. That’s why it’s important to surround yourself with optimistic people who will encourage you to achieve your goals. The more positive energy you have around you, the better you will feel about yourself.
13. Never seek approval from others.
Happy people don’t care what others think of them. They follow their own hearts without letting naysayers discourage them. They understand that it’s impossible to please everyone. Listen to what people have to say, but never seek anyone’s approval but your own.
14. Take the time to listen.
Talk less; listen more. Listening keeps your mind open to others’ wisdoms and outlooks on the world. The more intensely you listen, the quieter your mind gets, and the more content you feel.
15. Nurture social relationships.
A lonely person is a miserable person. Happy people understand how important it is to have strong, healthy relationships. Always take the time to see and talk to your family, friends, or significant other.
16. Meditate.
Meditating silences your mind and helps you find inner peace. You don’t have to be a zen master to pull it off. Happy people know how to silence their minds anywhere and anytime they need to calm their nerves.
17. Eat well.
Junk food makes you sluggish, and it’s difficult to be happy when you’re in that kind of state. Everything you eat directly affects your body’s ability to produce hormones, which will dictate your moods, energy, and mental focus. Be sure to eat foods that will keep your mind and body in good shape.
18. Exercise.
Studies have shown that exercise raises happiness levels just as much as Zoloft does. Exercising also boosts your self-esteem and gives you a higher sense of self-accomplishment.
19. Live minimally.
Happy people rarely keep clutter around the house because they know that extra belongings weigh them down and make them feel overwhelmed and stressed out. Some studies have concluded that Europeans are a lot happier than Americans are, which is interesting because they live in smaller homes, drive simpler cars, and own fewer items.
20. Tell the truth.
Lying stresses you out, corrodes your self-esteem, and makes you unlikeable. The truth will set you free. Being honest improves your mental health and builds others’ trust in you. Always be truthful, and never apologize for it.
21. Establish personal control.
Happy people have the ability to choose their own destinies. They don’t let others tell them how they should live their lives. Being in complete control of one’s own life brings positive feelings and a great sense of self-worth.
22. Accept what cannot be changed.
Once you accept the fact that life is not fair, you’ll be more at peace with yourself. Instead of obsessing over how unfair life is, just focus on what you can control and change it for the better.
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