Here are the Wall Street Journal’s recommendations. If I can help you with year end estate planning, gift, or other needs, call or email me at your convenience.
(c) 2011, Stephen M. Johnson, Esq.
Author Archives: Steve Johnson
New York: America’s Wealth Center
Not surprisingly, New York City has once again claimed the prize for highest concentration of wealthy Americans. Ever since America’s primary wealth creation shifted from rural, agricultural landowners to the financial industry, New York has been America’s wealth center.
(c) 2011, Stephen M. Johnson, Esq.
When Life Imitates Fiction
This Daily Mail (British newspaper) article on the reclusive New York heiress Huguette Clark caught my attention recently. Despite being a wealthy New York socialite with opulent homes around the country, she opted to live a reclusive lifestyle for some 80 years. She executed one Will leaving her estate to her family, some cousins. Two weeks later, she executed another Will leaving her estate mainly to a foundation run by her lawyer and accountant, while entirely disinheriting her family. John Grisham fans may recall some parallels to the opening of his bestselling novel The Testament, though fortunately Ms. Clark died of natural causes and old age, not foul play or suicide (as Mr. Grisham’s imagined testator died in the opening chapter). If I can help you or a loved one execute a Will, revise your Will, or discuss your estate planning needs, call or email me at your convenience.
(c) 2011, Stephen M. Johnson, Esq.
Private Foundations: an Estée Lauder Estate Planning Tactic
Interesting NY Times article regarding the heirs of the Estée Lauder empire and how they use private foundations and other legal entities as part of their comprehensive estate planning strategy. If I can help you develop your estate planning strategy or implement some part of it, call or email me at your convenience.
(c) 2011, Stephen M. Johnson, Esq.
Estate sales
Here’s a fascinating Washington Post story about an estate sale for the wife of U.S. Supreme Court Justice Potter Stewart. The estate sale offered a window into Washington social life during Justice Stewart’s career and also allowed a few aspiring lawyers to obtain some classic memorabilia, such as the Justice’s briefcase. A lawyer’s soft leather briefcase, just like his or her pen and legal pad (or computer and smart phone), is an integral part of the lawyer’s practice and professional image and reputation.
If you need help organizing an estate sale, administering the estate of a loved one or close friend, or advice on your own estate plan, give me a call or email at your convenience.
(c) 2011, Stephen M. Johnson, Esq.
The Return of the Millionaire Next Door
Reading this recent profile of the paradoxes of Republican Presidential candidate Mitt Romney in the NY Times reminded me of the classic financial and investment advice book, The Millionaire Next Door (1998). Whatever one thinks of Governor Romney’s politics, his apparent embrace of the frugal millionaire philosophy appears wise from a financial, investment, and estate planning perspective. Those interested in studying this frugal philosophy would also profit from The Millionaire Mind (2001), by the same author. A good estate plan should protect you and your family’s interests from unnecessary taxes and/or probate proceedings, while also staying out of your way to let you live your life with purpose and pleasure, enjoying the good and simple things of life that you’ve worked so hard for.
(c) 2011, Stephen M. Johnson, Esq.
The Challenges of Caring for Aging Parents
Via the Will, Trusts & Estates Prof blog, comes this Financial Advisor Magazine article about various challenges faced by younger generations in caring for aging parents and older generations. As the American population ages and demographics shift, older and younger generations would do well to consider how best to care for parents and older generations, and how best to plan one’s own long term care, including retirement, Medicare, and Medicaid planning, and long term care insurance, as assisted living or nursing home bills can often devour an individual’s hard earned life savings within a few months or years. Call or email me if I can help you explore these issues and figure how to best care for aging parents or plan your own long term care.
(c) 2011, Stephen M. Johnson, Esq.
End of Life Planning – Thinking about the Unthinkable
A thought provoking LA Times column by Steve Lopez, the columnist featured in the 2009 feature film The Soloist. While end of life planning and “thinking about the unthinkable” isn’t always enjoyable, it does makes life easier for your family and friends, because no one wants to create an impossible end of life conundrum a la Nancy Cruzan or Terry Schiavo. If I can help you or your loved ones with a living will or medical durable power of attorney, or simply review your existing estate plan to ensure it meets your needs, call or email me to schedule a convenient appointment.
(c) 2011, Stephen M. Johnson, Esq.
Crash proof your portfolio and estate
Interesting Wall Street Journal article that counter intuitively argues that the top 1% of income earners are often the most crash prone in their portfolios. Whatever your income level, portfolio composition, or family situation, take some time this holiday season to contemplate your estate plan and being sure you are comfortable with the level of risk you have assumed in your portfolio and assets. A good estate plan will be flexible enough to handle changes in your income, your assets and portfolio, and family situation.
(c) 2011, Stephen M. Johnson, Esq.
Baby Boomers to Millennials: No Inheritance for You?
Interesting article from the Los Angeles Times. Apparently many Baby Boomers are frowning on leaving an inheritance for their children, including many in the millennial generation. A U.S. Trust (Bank of America’s trust division) survey finds that 49% of millionaires in the Baby Boomer generation don’t plan to leave their children an inheritance. A variety of factors may be in play: (1) people living longer (and corresponding fear of outliving savings), (2) the economic fallout on people’s retirement savings, (3) enjoying spending the wealth that they themselves worked hard to accumulate, (4) helping support elderly parents or adult children who’ve been displaced by economic woes, (5) don’t want to spoil kids or give them a sense of entitlement, and other issues. One Baby Boomer said, “If [my kids] can’t make it on their own now, they can never make it. I’ve done my job. Now I’m going to enjoy life.”
This may also be tied to a developing trend among the very wealthy – billionaires pledging to give their fortunes to charity. From a tax and estate planning perspective, Baby Boomers would be well advised to remember the increased gifting opportunities available during 2011 and 2012 ($26,000 combined gifts from husband and wife per donee each year, $5 million lifetime gift tax exemption). In some situations, it may also make sense for Baby Boomers to give their children inter-family loans to help with the purchase of a car, home, or business interest, or to consider various business succession options. Additionally, leveraging trusts, especially multigenerational trusts, is a wise idea in some cases to preserve great amounts of wealth for future generations. Charitable giving is always a wonderful idea to help others and leave a legacy of generosity.
If many of these Baby Boomers disclaimed inheritances from their parents, this study would be misleading, because the bulk of the inheritance would already be waiting in trust for the millennials. If the study is accurate, it may mean that the great structural transfer of wealth between generations (estimated in the trillions) may be much ado about nothing, as Shakespeare would say. Please call me or email me if I can help you or your family with these important estate planning issues.
(c) 2011, Stephen M. Johnson, Esq.
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