Funding a Roth IRA for teenager with earned income…   #coolthings

10,000 steps a day   #coolthings

Revocable trust income taxed to the grantor (at grantor tax rates, not trust tax rates) during lifetime under grantor trust rules if grantor or spouse is trustee   #coolthings 

Dunwoody Police Department   #coolthings

Stepped up basis for assets transferred at death to fair market value at owner’s date of death…   #coolthings

Paying it forward…  #coolthings

Holding Georgia principal residence in a revocable trust doesn’t change your eligibility for homestead real property tax exemption    #coolthings

Anonymous good deeds    #coolthings

Revocable trust a good tool for disability/incapacity planning   #coolthings 

No drama   #coolthings

Revocable trust a great tool if you own property in several states   #coolthings

SEC football   #coolthings

Do it before the new year   #coolthings

If you want what normal people have, do what normal people do.   We’ve got to stop making a dent and start making a difference.  #coolthings

Karen Hindson,  Hindson & Melton LLC,   November 9, 2014

“Every cloud has a silver lining…” 

Phrases.org informs us that John Milton first penned the phrase “silver lining” in 1634 in Comus: A Mask Presented at Ludlow Castle:

I see ye visably, and now believe
That he, the Supreme Good, to whom all things ill
Are but as slavish officers of vengeance,
Would send a glistening guardian, if need were
To keep my life and honour unassailed.
Was I deceived, or did a sable cloud
Turn forth her silver lining on the night?
I did not err; there does a sable cloud
Turn forth her silver lining on the night,
And casts a gleam over this tufted grove.

Your silver lining might not feel like a glistening guardian, at least not at first.  But in the midst of divorce, pause to consider that good can come from a bad situation.

Good coming from evil

Jewish and Christian tradition speaks of good coming from evil.  The book of Genesis includes the story of Joseph whose jealous brothers sold him into slavery.  Through a circuitous route including false allegations, an undeserved prison sentence, and gifted dream interpretations, Joseph winds up as Egyptian Pharaoh’s right-hand man at a time of severe famine.  As a result, Joseph is able to provide life-saving grain to his entire family and is reunited with his father and brothers.  Rather than be angry with his brothers who had betrayed him, Joseph says to them, “Don’t be afraid.  Am I in the place of God? You intended to harm me, but God intended it for good to accomplish what is now being done, the saving of many lives.  So then, don’t be afraid.  I will provide for you and your children.  And he reassured them and spoke kindly to them.”  (Genesis 50:19-20, NIV)

The Gift of Adversity

I recently heard an interview of Dr. Norman E. Rosenthal, author of “The Gift of Adversity: The Unexpected Benefits of Life’s Difficulties, Setbacks, and Imperfections”.  Dr. Rosenthal believes that life’s most important lessons can be best learned from experiencing adversity.  Dr. Rosenthal grew up Jewish in apartheid-era South Africa.  As an adult, he suffered a violent random attack from a stranger.  He focuses on finding something of value in each negative experience.  Rosenthal’s personal philosophy is that you can become a stronger person if you learn from your mistakes and misfortunes.  Information about his book on Amazon.com says “Rosenthal shows that engaging with our own failures and defeats is one of the only ways we are able to live authentic and meaningful lives, and that each different type of adversity carries its own challenges and has the potential to yield its own form of wisdom.”

Divorce is adversity

Whether contested or uncontested, coping with divorce is adversity.  Most divorcing clients have regret or a sense of having failed in some significant way.  Many encounter financial, social, moral, and legal challenges as part of coping with divorce; many residents of Dunwoody, Sandy Springs, and Brookhaven seek both legal and social support when facing divorce.

Tips on coping with divorce?  Rosenthal suggests the following response to adversity:

• Accept that the setback, obstacle, or challenge has occurred
• Analyze the situation carefully
• Respond proportionally
• Stabilize your own physiology – don’t compound the adversity by unhealthy habits
• Reach out for support
• Cultivate good habits (sleep, exercise, eat right)
• Make the decision not to let one bad event erode you.

Many religious and community organizations offer divorce support groups.  Consider joining one.  Intentionally reach out for support in new and healthy ways.  Divorce does not define you.  Search for a silver lining in your cloud, opportunities for personal growth, and the gifts of adversity.

© Karen S. Hindson, Hindson & Melton LLC  October 16, 2013

ALSO SEE:

• DIVORCE COGNITIVE BEHAVIORAL THERAPY
• FAMILY LAW AND THE ART OF CRITICAL DECISION MAKING
• THE POWER OF “I CHOOSE”

• The exclusion amount of $5 million continues in effect but is inflation-adjusted; for 2012 the exclusion amount was $5.12 million and for 2013 it increases to $5.25 million.  If ATRA had not passed, the estate tax exclusion amount for 2013 would have dropped to $1 million, with no inflation adjustment.
• Portability has been enacted as a permanent feature of federal estate tax law.  Portability allows a surviving spouse to utilize the unused portion of the first spouse to die’s gift and estate tax exclusion amount.
• Portability is an election that requires filing a Form 706 estate tax return, even if the estate and gifts of the first spouse are less than the exclusion amount.   As a result, the surviving spouse must weigh the expense and complexity of filing the estate tax return against the likelihood that the second spouse to die will need the unused portion of the first spouse’s gift and estate tax exclusion amount.
• Portability is not indexed for inflation after the year of death.
• The estate tax return must be filed within 9 months after date of death so the portability election is time-sensitive.  It is possible to request a 6 month extension.
• For 2013 and future years, the top tax rate for federal estate, gift and generation-skipping transfer tax increases to 40 percent.   Absent ATRA, the estate tax rate for 2013 would have jumped to 55 percent with no portability feature.
• Some couples think that portability will fully address their estate tax planning concerns.  However, portability does not offer any creditor protection, and the surviving spouse might select beneficiaries that the first spouse did not intend after the death of the first spouse.  Traditional estate planning tools such as credit shelter trusts continue to offer safeguards that are desirable to some clients.
• State estate tax and inheritance tax laws vary widely and must be considered in estate planning.  As states seek additional revenues, expect creativity on this front.  A limited number  of states currently give domestic partners tax parity with surviving spouses.
• The annual gift tax exclusion amount has been $13,000; for 2013 it increases to $14,000 per donee ($28,000 if gift-splitting).

While the rules and the tools change from year to year, the fundamental importance of estate planning has not changed.  Work with a qualified estate planning attorney to clarify your estate planning objectives and implement a plan appropriate to your family and assets.  Hindson & Melton LLC serves clients in Georgia and South Carolina, including Atlanta, Dunwoody, Sandy Springs, Roswell, Charleston, and surrounding communities.

© Karen S. Hindson, Hindson & Melton LLC, March 23, 2013

A child support or child custody modification action has traditionally been filed in the county of the current residence of the Defendant.  Contempt of court actions have been filed in the county that granted the original divorce, the theory being that the Court that entered the original order was the only court that had jurisdiction to decide whether to hold a party in contempt for failure to comply.

For some years, there has been an exception to the normal rule, permitting a Defendant to file a “counterclaim” for contempt along with the answer to a modification action.  The Ford v. Hanna case announces the Supreme Court’s conclusion that the Petitioner can now combine a modification action and a contempt action together in the same Petition.  The proper county for filing the action is the county of the Defendant’s residence, in order that the Court will have personal jurisdiction over the Defendant.

Thus, for example, if a parent needs to petition the Court to modify custody and change the visitation schedule, and the Defendant also has failed to abide by the Court’s original order to pay child support or medical expenses, both the modification and contempt actions can be combined in a single action filed by Petitioner in the Defendant’s county of residence.

Hindson & Melton LLC can assist you in evaluating your Georgia child custody, child support, and modification questions.  We will help you formulate a course of action appropriate to your situation.  Our offices are convenient to metro north Atlanta and Dunwoody, Sandy Springs, Roswell, Alpharetta, and Marietta, and we accept cases throughout the extended metro Atlanta area.

© Karen S. Hindson, Hindson & Melton LLC, March 11, 2013

• Have there been signficant changes in your assets or your family situation since you signed your Last Will and Testament?
• Are the persons you named as Executor, Guardian for your children, or Trustee still alive and good choices to serve in these roles?
• If you named Co-Executors, do they get along well or is there likely to be conflict?
• Does your Will reference a personal property memorandum and if so, have you prepared one?  Where is it?
• Where do you keep your original Will, who knows where it is, and do you have confidence that it would be found and honored if you die?
• Do the terms of your Will coordinate well with your “non probate” assets – such as jointly titled properties, TOD  (transfer on death) or POD (pay on death) accounts or assets, life insurance policies, annuities, IRAs, and 401(k) accounts?
• Do you understand what would happen to each asset in the event of your death?  Have you confirmed that your understanding is correct?
• Do you have step-children and have your wishes regarding them been clearly spelled out in your Will?
• If you are named in your parents’ planning documents, are their documents current?
• If you own a business or part of a business, what happens in the event of your death?  Is this determined by your Will or are there business documents that govern?
• Do you own assets that your heirs or Executor would not know how to handle, such as a valuable collection of personal property items?
• How old are your estate planning documents, and were they prepared by a qualified professional?

Estate Planning Checkup - Powers of Attorney

• Do you have either a health care power of attorney or an advance directive for health care?  Are the health care agents you named still alive and good choices?
• Does your health care agent have a copy of your health care POA or advance directive?
• Do you have a durable financial power of attorney?  Does your financial power of attorney become effective only if you are incapcitated?  Is the agent still alive and a good choice?  Should you name an alternate agent?
• Do you have an old power of attorney that needs to be revoked?
• Do your parents have powers of attorney that are appropriate in light of their health, assets, and family issues?

Estate Planning Checkup – Trusts

• If you have a trust, do you understand the purpose of the trust?
• Has your trust been funded or have properties been transferred to the trust as you intended?
• Do you know what is owned by your trust?
• Are there changes that need to be made in the Trustee or other trust terms?

Estate Planning Checkup - Beneficiary designations

• When is the last time you checked your employer’s records, life insurance, and retirement investment accounts to see who your named beneficiaries are?
• Are your beneficiary designations coordinated with your Last Will and Testament and other planning documents?
• Do you have copies of the beneficiary designations or printouts in a notebook?

Estate Planning Checkup – Accounts and passwords

• Do you have online accounts for which you do not receive paper statements?
• Do  have a complete and current list of accounts, log-ins, and passwords in case of your death or incapacity?  Where is this list and who knows about it?
• Are there business accounts that someone would need to access in the event of your death or incapacity?

Estate Planning Checkup - Insurance

• If you have disability, long term care, or life insurance, do you have a copy of each policy, and does your family know where they are?  Do they understand what would be required to be eligible for benefits?
• Do you have insurance appropriate to your family situation, needs and goals?  Do you understand the policies you have?

In Conclusion

This checkup is not a complete list of questions; it is intended to stimulate your thoughts about your situation and your personal estate plan.  Every individual has specific concerns based on his or her life choices, family relationships, and assets.    Contact the attorneys of  Hindson & Melton LLC or another qualified estate planning firm to create, review, or update your estate plan.  Hindson & Melton LLC serves Metropolitan Atlanta, Dunwoody, Sandy Springs, and Alpharetta Georgia, as well as Charleston, South Carolina.

© Karen S. Hindson, Hindson & Melton LLC, February 28, 2013