The Law Offices of Daniel Timins Blog

5 Special Provisions You Should Add to Your Will

Posted on March 15, 2017

At some level, American Wills have not changed much in the last 200 years: Just like in old-timey England you need to (1) state who gets what, particularly anything left-over (your residuary estate), (2) who shall manage your estate’s affairs (your Executor), (3) you need to sign your Will or have someone do it for you in your presence with your permission if you don’t do so yourself, and (4) you need two disinterested witnesses who sign your Will in your presence as you state it is your Will. However, there are a few modern developments and government programs that justify adding the following provisions to even the most routine Wills: Contingent Ownership of a 529 Plan: If you

Medicaid Pitfalls: Cash Value Life Insurance

Posted on March 10, 2017

Qualifying for Medicaid can be a pain in the neck: You can only qualify for benefits if you have a limited amount of assets and income. Yes, there are some exceptions, but in most cases there are financial limits. Unfortunately, people’s past investment decisions may severely impact their current eligibility. One of the worst former financial decisions for Medicaid planning is the limits placed on cash value life insurance. “Permanent” life insurance is meant to last until you reach age 95 or 100, then pay out to you or your beneficiary even if you are still alive. These policies allow you to invest extra money to the policy’s “cash value” so that as the annual cost of the insurance

Naming Beneficiaries: When to Start (and Stop) Asking “What If?”

Posted on February 17, 2017

My mentor was a meticulous, forward-thinking attorney. When she retired from private practice I succeeded her and took over her client files. As a result, I had the pleasure of reading many of the wills she had drafted (not a recommended activity for narcoleptics who don’t want to fall asleep). She was absolutely scrupulous when it came to naming contingent beneficiaries to an estate. For some of her clients, and indeed for me too at times, it seemed like a maddening process. Here is a common scenario: I imagine going to an attorney to draft my Will, create beneficiary designation forms, and consider creating a trust. Now comes the moment of truth: When I pass away, who gets what?

IRAs v. Roths? Choose the “Absolute Benefit”

Posted on February 14, 2017

No one knows their financial future with certainty, but when given the choice, I almost always suggest taking a sure thing now (an “Absolute Benefit”) over risking an uncertain future (an “Uncertain Benefit”). In this regard, I tell all of my clients to take a tax deduction now and invest in a tax deductible IRA or 401(k) instead of contributing to a Roth IRA or Roth 401(k) plan, in order to optimize the certainty of income tax savings. Remember that you take an immediate income tax deduction on a 401(k) or most traditional IRA contributions; you only pay taxes when you withdraw funds (usually after you are retired, and your tax bracket is lower). In contrast, Roth accounts require

When Should I Use or Avoid A Joint Trust?

Posted on February 3, 2017

A joint trust is a trust created during your lifetime, where both you and at least one other individual are the Grantors (creators). These are almost always “inter vivos” (created during your life, and not by a will upon your passing), and tend to be done by happily married spouses. While they tend to simplify most people’s estate plans by only having to deal with one document, joint trusts also have a time and a place when they should be avoided. The most ideal time to utilize joint trusts is when the creators of the trust are (1) married, (2) want the same end-result for the funds, and (3) trust the surviving creator to control the funds when he/she