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Bet this will not be in a future Apple commercial...

http://blogs.findlaw.com/legally_weird/2014/08/accused-murderer-asked-siri-how-to-hide-roommates-body-police.html

Scammers Preying On Grandparents

The National Council on Aging has identified the Grandparent Scam as one of the top 10 cons targeting the seniors. The scam involves asking grandparents to send money to help out a grandchild in a legal bind.

This happens quite often, and many grandparents might be too embarrassed or scared to report it to relatives or police. An article from the Detroit Free Press tells us that in many instances, the victims don't see their money again, particular when it’s a wire transfer. The article, titled “Loving grandparents target of latest 'send money' scheme,” says that some Michigan grandparents were out $33,000 after being told their grandson was caught fishing without a license in Canada and had drugs and alcohol on his boat.

The FBI cautions grandparents to resist the urge to act quickly. Make sure you confirm the caller's story, as well as the grandchild's travel schedule.

The article explains that real selling point in this scam is the personal information fraudsters retrieve from Internet and social media that convince seniors that the caller knows their grandchild. Combine this with the fact that grandparents love their grandchildren and are eager to help them out.

The scam is kicking into high gear now that we’re in the summer travel season. The article warns that the scam can also come in various forms: like the caller posing as the grandchild, as a police officer, or as a lawyer. The call often comes late at night, waking grandparents and catching them off-guard. In other instances, scammers reach out via e-mail.

Grandchildren can do their part by educating grandparents about social media and all of seemingly "private" info anyone can find out about you; telling your grandparents about your travel schedule; and making an emergency contact plan (like who you would call first if something happened while you were away or choose a code word to use to prove that the caller is really your friend). And grandparents should remember the following:

• Be suspicious if the caller doesn't use your grandchild's name, instead saying, for example, "I'm Nancy, your granddaughter’s friend." They likely are waiting for you to fill the blanks with a reply, like "You mean Lisa?”
• Test the caller by asking a question only your grandchild would know;
• Pay attention to the caller's voice and words, if he or she claims to be your grandchild. Does it really sound like your grandchild?
• Don't react immediately;
• Beware of phone calls in the middle of the night or ones in which you're asked not to tell the grandchild's parents about this;
• Double-check all information the caller gives you. Contact the parents or other relatives, even if the caller asks you to keep it a secret;
• Don't use a wire transfer, because if it's a scam, you won't be able to get it back; and
• If you’re scammed, report it to your law enforcement.

Reference: Detroit Free Press (June 8, 2015) “Loving grandparents target of latest 'send money' scheme”

Why You Should Not Write Your Own Will

Most people do it to save money, but they may overlook or forget to take care of some important details – details that may eventually cost them much more than the amount they could save.

Wills, trusts and estate plans should be crafted with the help of an estate planning attorney. Don’t try this at home all alone!

The Meridian (MS) Star’s article, titled “Reasons not to write your own will,” says that some of the big mistakes include these:

• State law differences. Many online wills and trusts don’t apply state laws, just basic concepts. An estate planning attorney knows these state laws and can make sure your will or trust is legal.
• Super software. There is some software and online forms that can help you draft a will, but there’s no guarantee the technology will ask specific, unique questions that an estate planning attorney might ask about your estate.
• Earlier wills. Most wills have boilerplate language that will revoke a preceding will. If you write your will totally on your own, you may not realize that you need this clause.
• Assumptions. What if you will property to your child and you outlive her? What if you will an asset to a friend, and that asset is gone when your will is executed? Things to think about that most people writing a will haven’t considered.
• Vagueness. Sometimes executors aren’t given enough power by the language of a will.

Is it really worth all the risk? Contact Robert A. Gordon of Redkey Gordon Law Corp, an estate planning attorney today.

Reference: The Meridian (MS) Star (June 7, 2015) “Reasons not to write your own will”

Who Will Be Your Trustee?

Many people set up trusts to help provide for loved ones and favorite causes after they pass away. A trust can help manage the wealth you wish to transfer and ensures the efficient distribution of assets—such as property or a sum of money—over a set period of time. Yet a trust is only as strong as the trustee overseeing it.

A trustee is the individual or company that administers a trust for the benefit of named beneficiaries. Duties can range widely and may include paying bills and taxes, and managing property and investments.

Forbes recently had a nice article about this titled “How To Choose The Right Trustee For Your Estate.” Most importantly, the article says a trustee “has a legal fiduciary duty to manage a trust on a beneficiary’s behalf,” by always acting in the beneficiary’s best interests, as outlined by the trust.

The trustee’s job isn’t easy nor quick. Overseeing a trust could mean years of active engagement with the estate’s beneficiaries. For this reason, the article emphasizes that it’s essential to think about the most appropriate trustee before making the appointment.

A trustee doesn’t need a lot of legal or financial knowledge, but needs to be someone you trust implicitly. In addition, close proximity to the beneficiaries is important so that duties can be performed quickly and without undue travel expense. Above all, it should be someone who has the energy and mental acuity to take on all responsibilities.

Managing a trust is a big responsibility and requires a candid conversation with the potential trustee. A trustee needs to know up front what is being asked of him or her. The article also emphasizes the importance of periodically re-evaluating your trustee choice as circumstances can change. Have you and this friend grown apart or now is your parent is too old to help? If yes, it’s time to consider a new trustee.

Another option is a trust company. A trust company will be unemotional and completely detached from the situation. “There are definitely fewer family feuds when trust companies are involved,” the article says. Trust companies can also bring expertise and experience that a non-professional trustee can rarely match. The potential downside to hiring a company is that trust companies charge a fee. This can vary, but is usually a percentage of the estate. A friend or family trustee will usually not charge for their services.

Finally, the article emphasizes the importance of having language in your will that allows you to assign new trustees if circumstances change. To do this you will need flexibility in your trust language.

Robert A. Gordon of Redkey Gordon Law Corp, an experienced estate planning attorney can help you through this process.

Reference: Forbes (May 19, 2015) “How To Choose The Right Trustee For Your Estate”

Retirees Need to Ask 6 Key Questions before Relocating

Thinking about pulling up stakes when you retire? Review this checklist of financial concerns first.

Moving during retirement is not just about the scenery. You need to understand the full financial impact that can come from relocation.

Morningstar’s recentarticle, titled “6 Questions to Ask Before Relocating in Retirement,” sets out some key questions for you to answer:

Should I downsize? This depends on how many visitors you plan to have and how often. If you're moving far away from family, you may not expect many visits. Also, if you sell your home and buy a less-expensive home, you will probably be able to add the difference (minus fees and other expenses) to your retirement fund.

What's the cost of living at the new location?  You have to consider the total cost of living, which goes beyond taxes and includes expenses such as health care, food, and transportation. While real estate prices in popular "glamor" cities like New York and LA are usually higher than smaller cities or college towns, it's your total outlay that counts: you may be able to live in a smaller space in a big city and save money on downsizing. Look at all of the expenses.

How will relocating impact my cash flow in retirement? The article says to remember that it's what you keep after taxes and inflation that counts. Look at state income tax rates because there are a few states that don't have any income tax. These include Alaska, Florida, Nevada, South Dakota, Texas, and Wyoming. But if you examine the tax practices of other states, you'll find variations. To understand the total impact relocating will have on your after-tax cash flow in each place you're considering, work with your estate planning attorney.

Are there going to be estate-planning concerns? Relocating and establishing residency in a new state means new laws. Speak with Robert A. Gordon of Redkey Gordon Law Corp, an estate-planning attorney before you make this relocation decision to see if your estate would be subject to higher taxes and/or greater restrictions in a new location. Does the new state have an inheritance tax? How will the state value your assets? Will your surviving spouse be shielded from taxes? All great questions for your meeting with your estate planning attorney.

Will relocating improve my quality of life? So, will you be able to maintain or enhance your quality of life if you relocate? Will you be happy living farther away from your friends and family? That’s the big question.

Ultimately, the article says the decision to relocate really comes down to whether you can afford it and whether it will make you happier.

Reference: Morningstar (June 7, 2015) “6 Questions to Ask Before Relocating in Retirement”

Save Your Home with a Life Estate

Let's take a closer look at what a life estate is and how using one could help you save your family home.

Home is where the heart is. The thought of losing your home can be devastating. What options do you have to prevent this from happening?

Motley Fool’s recent article, titled “What a Life Estate Is And How It Could Save Your Home,” tells us about life estates.

A life estate gives an individual the right to a home or other real property throughout that person's life. The life estate holder can live in the home, rent it out and keep the proceeds. The life estate holder has to pay the ordinary costs of maintaining the home, like property taxes. When the life estate holder dies, the property then goes to the holder of the remainder interest, who automatically receives full legal title and possession of the property without going through probate.

The article explains that to create a life estate, the owner of the property can execute a deed that retains a life estate interest but gives the remainder interest to another person or group. Many use a life estate to safeguard the family home from creditors, especially Medicaid. The rules of Medicaid don’t require you to sell the family home, but Medicaid puts a lien on the home. After the original owner dies, Medicaid is entitled to collect against that lien, forcing the sale of the home if necessary in order to collect that money. But if you create the life estate at least five years beforehand, Medicaid's anti-transfer rules typically don’t apply.

However, life estates do present some challenges, such as the fact that the creation of the life estate is treated as a gift to the remainder interest holder, which may mean gift tax liability. Also, the life estate holder can't sell the property without the permission of the holders of the remainder interest. The proceeds of a sale have to be divided according to the relative value of the life estate and remainder interests.

Legal concepts like life estates can be difficult to understand. Talk to Robert A. Gordon of Redkey Gordon Law Corp, an estate planning attorney about this way to preserve a family home. A life estate may not make sense for everyone, but they can be useful in the right situations for those who understand all of the factors involved.

Reference: Motley Fool (June 8, 2015) “What a Life Estate Is And How It Could Save Your Home”