Tag Archives: Will

Estate Planning – Total Document Summary – Part 1

This is another redo of an article/post of several years back. We reference this so much we thought it a good idea to present it again, especially to those who may not have seen it originally – As a reminder, we like all of your Estate Planning Documents to have a virtual home in your Vault for easy, safe continued access! Ok – Let’s get going – again!

The term “Estate Planning” gets thrown around frequently, sometimes by us. Recently we tossed the term out and upon finding we did not have an article with a total summary of “Estate Planning Docs” an article was born.

Break in – If you have not reviewed your documents in five + years, now is a good time… let us know, as we should have a soft copy of file … if not…send us one please!

Estate Planning Docs

Will – Document that directs non-beneficiary directed assets (Ex ..house, property, cash and regular investment assets) and may create trusts for minors, names a Custodian, Executor and may also create trusts and Trustees for estate tax minimization and other uses (see final statement in article below on Trusts.)

Power of Attorney– Financial document that appoints someone other than you to make most financial decisions in your absence. Generally this document immediately becomes effective upon authorization, as opposed to upon disability.

Healthcare Power of Attorney – Document that appoints someone to make important healthcare decisions if you are unable. Think un-conscience and need to approve some type of procedure.

HIPPA – Allows your appointed person to receive medical information on your behalf. This is the ant-privacy document to counter unintended consequences of many of the recently enacted privacy laws.

Living Will- Cease and Decease – DNR – These titles are one in the same and are frequently confusing. This document allows medical professionals to NOT mandate all possible care, should you become deceased mentally, but not in body function. DNR stands for do not resuscitate, and is probably the most explanative title.

We will dig more into Trusts in a specialized post (Part 2)  just dealing specifically with that area of Estate Planning!

Now you have a great all-in-one spot for just what the heck all those “Estate Planning” docs are… and us too !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

JK Street Cents Logo

June 2016 Video, Planning Tip-Economic and Capital Market Monthly Review, By John Kvale

We are at the half way point of the year. In this review of the year so far and preview of the remainder, we look longer than our regular month for sentimental and digital diary reasons!

Here is our  June 2016, Extended view – Economic and Capital Market Review, with a great financial planning tip, and of course our Video for your viewing and listening pleasure.

Hope you enjoy!

June 2016 Video

 

Financial Planning Tip –

Estate Planning Docs In One Box

After discovering we DID NOT have a comprehensive high level Estate Planning article, a two-part series was happily created – for the record more articles similar to this are expected due to their popularity and handy reference ability:

ESTATE PLANNING DOCS

Will – Document that directs non-beneficiary directed assets (Ex ..house, property, cash and regular investment assets) and may create trusts for minors, names a Custodian, Executor and may also create trusts and Trustees for estate tax minimization and other uses (see final statement in article below on Trusts.)

Power of Attorney– Financial document that appoints someone other than you to make most financial decisions in your absence. .

Healthcare Power of Attorney – Document that appoints someone to make important healthcare decisions if you are unable.

HIPPA – Allows your appointed person to receive medical information on your behalf.

Living Will- Cease and Decease – DNR – These titles are one in the same and are frequently confusing. This document allows medical professionals to NOT mandate all possible care, should you become deceased mentally, but not in body function.

Estate Planning Docs Part Two – Trusts

TRUSTS – ALL TYPE REVIEW

Revocable Trust – By far the most common and most commonly misunderstood Trust of the bunch. Revocable means it can be changed at the grantors request.

Testamentary Trust – Trust that is usually embedded in a Will and is created upon the grantors death.

Irrevocable Trust – The Hulk of Trusts. Being Irrevocable, once established and funded, this Trust is a beast. Estate tax, liability, inheritance are just a few items that can be addressed with an Irrevocable Trust.

QTIP Trust : Qualified Terminal Interest Trust – Most common set up by Grantor to give direction to assets beyond the spouse.

Credit Shelter/A:B Trust – Type of trust that is used to help minimize Estate taxes by maximizing the first person in a married couples Estate tax exemption upon death commonly resides in a Will.

GST or Generation Skipping Trust – This handy estate planning trust gives relief to Grantors by jumping a generation and essentially skipping the Grantors children and passing to the grandchildren.

ILIT : Irrevocable Life Insurance Trust – This trust is very useful in getting life insurance proceeds out of a Grantors estate.

Here is a link to the original detailed post.

Economic Update

Brexit changes our view on rates

With the British vote to exit the European Union, the Federal Open Market Committee (FOMC) lead by chair Janet Yellen will be hard pressed to raise rates. The only reason we can see higher rates sooner rather than later now would be some (multiple reports needed) major inflationary factors that feed through to the economic reports- While big advocates of higher rates and our research shows rates have been raised during an election year, it’s likely off the table for the remainder of the year.

Brexit changes US Presidential Election

Brexit may also change the US Presidential election as the polls of the British were so far from accurate, we expect many to have less confidence in our current US Presidential polls.

Capital Markets Update

New all time high?

With the afore-mentioned rate increase off the table and possible international perceived disruption due to Brexit – US capital markets  may be the recipient of fresh capital from global corners of the world.

New highs (S&P 500) would not surprise us at this time and the odds are now better than not from our perch. Minor expansion in Bunny like fashion (explanation to come upon occurrence) looks possible, of course twists and turns have been the norm lately.

7-5-16 SP 500

Earnings are the ultimate driver of equity prices, and US capital markets are currently frothy if not overpriced.  We think they can get more overpriced due to the above concerns.

7-1-16 PE Ratio SP 500

 Long term average is 15!

Have a Great Day!

See you again at the end of July !

John A. Kvale

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com
JK Street Cents Logo

 

 

How does someone with a $300 million net worth NOT have a Will?

Recently, a famous musician, especially popular in my generation, passed away suddenly at the very young age of 57. While very fond of his music, his planning was disappointing.

Not only will he be missed, but his lack of a basic planning tool, may lead to many terrible outcomes.

No Will ?

It is estimated the Prince’s net worth is near $300 million. Certainly he had been advised to create an Estate Plan with the appropriate documents to help ensure a fluid transition, should he pass.

For whatever reason, by Prince not having a Will, his estate may have some of the following challenges.

  • Unknown spirit of wishes – The courts will decide who gets what, rarely a desirable outcome.
  • Massive extra expenses – While the courts decide who gets what, the extra avoidable expenses are certain to mount.
  • Delay – It would not be surprising to us for it to take a decade (yes, 10 years or more) to completely settle the estate.
  • Friends/relatives come running- Just as a lottery winner finds she has many new friends and unknown relative, $300 million will certainly draw attention and confusion.
  • Taxes- Prince’s estate will be subject to multiple levels of taxes, not all would have been avoided, but without any planning, the federal government stands to receive much more than otherwise would have been necessary.

It will be interesting to find out why Prince chose not to have any plans….heck, we may never know. No matter, while his music has left a legacy, his mistake certainly can teach us all an easy lesson!

Have a Great Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

 

 

April 2016 Video, Economic and Capital Market Monthly Review, By John Kvale

Here is our April 2016, all new…trendy format Monthly Economic and Capital Market Review, along with a Video for your viewing and listening pleasure. Hope you are enjoying!

 April 2016 Video

Financial Planning Tip – The Estate Plan

Estate Docs Summary

Recently we came across the fact that we did not have a post with a summary of Estate Planning Docs. Here is a link to the detailed explanation of each.

The documents needed:

  • Wills
  • Power of Attorney
  • Healthcare Power of Attorney
  • HIPPA
  • Living Will
  • Trusts

A good Estate Plan will likely include most of these documents.

Economic Update

US Dollar Takes a rest

After a scorching run (much stronger) in 2014 and early 2015, the US Dollar has slowed it’s ascent. While travelers abroad have enjoyed a stronger translation of currency, headwinds have occurred in many other ways.

  • International Company profits struggle
  • Commodity weakness
  • Foreign holdings sag in value
  • Foreign Countries holding US debt saw increased amounts
  • China devalue the US peg, slowly

4-29-16 US Dollar 1- year

 

GDP Update

The first Quarter of 2016, Gross Domestic Production (the broadest measure of economic growth/production) was revised to .5%.  The Federal Reserve members want this much higher, think 2% plus.

As can be seen this number is volatile and for some reason has been showing a rather weak first quarter reading the past several years.

Two consecutive negative readings of GDP are the definition of a recession.

 4-28-16 GDP Econoday

Capital Markets Update

Commodities

After dropping to $26 and change in February, oil breached $45 a barrel this latest month. It is highly possible that when we look back on the affects of this extremely low oil price had on our economy, it MAY have been much greater than we ever expected.

Oil related tentacles may have gone much more broad than measured. Another benefactor of the stable/weaker US dollar.

 

4-29-16 Crude Front Futures

 

International Markets

Little brother international markets, more commonly known as Emerging Markets may be getting their feet under them. Tossed out and left for dead, these markets may have the strongest long term growth potential in the world.

4-28-16 EEM

Never go all in or all out !

 

Have a Great Day!

See you again at the end of May !

John A. Kvale

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com
JK Street Cents Logo

 

 

Estate Planning – Total document summary

The term “Estate Planning” gets thrown around frequently, sometimes by us. Recently we tossed the term out and upon finding we did not have an article with a total summary of “Estate Planning Docs” an article was born.

Break in – If you have not reviewed your documents in five + years, now is a good time… let us know, as we should have a soft copy of file … if not…send us one please!

Estate Planning Docs

Will – Document that directs non-beneficiary directed assets (Ex ..house, property, cash and regular investment assets) and may create trusts for minors, names a Custodian, Executor and may also create trusts and Trustees for estate tax minimization and other uses (see final statement in article below on Trusts.)

Power of Attorney– Financial document that appoints someone other than you to make most financial decisions in your absence. Generally this document immediately becomes effective upon authorization, as opposed to upon disability.

Healthcare Power of Attorney – Document that appoints someone to make important healthcare decisions if you are unable. Think un-conscience and need to approve some type of procedure.

HIPPA – Allows your appointed person to receive medical information on your behalf. This is the ant-privacy document to counter unintended consequences of many of the recently enacted privacy laws.

Living Will- Cease and Decease – DNR – These titles are one in the same and are frequently confusing. This document allows medical professionals to NOT mandate all possible care, should you become deceased mentally, but not in body function. DNR stands for do not resuscitate, and is probably the most explanative title.

We will dig more into Trusts in a specialized post just dealing specifically with that area of Estate Planning!

Now you have a great all-in-one spot for just what the heck all those “Estate Planning” docs are… and us too !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

JK Street Cents Logo

 

Joint Tenant with Rights of Survivorship

Seemingly meaningless items, like the title of a bank or other asset account may unknowingly cause you grief later … watch the titles.

Joint Tenant with Rights of Survivorship aka JTWROS

  • Automatically sends assets to the joint holder upon death of other
  • Avoids probate
  • Since Avoids probate, may not be controlled by your Will
  • Very Powerful
  • Can lead to inadvertent mistakes in Estate Planning

JTWROS

These are the key characteristics of the simple but powerful titling.

If by asking yourself, in the case of death, your JTWROS co-signer receives the asset directly is ok!  Then you are in good shape.

If not, call us, we will review with you!

Have a great day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

 

The Power of Attorney …

As summer travel season nears we thought a quick reminder to make sure you have all of your Estate documents (Wills, Trusts …) in order, and especially one document we find extremely useful.

The Power of AttorneyLivingTrustEstatePic

This document frequent comes in two forms, both very powerful.

  • Financial Power of Attorney
  • Health care Power of Attorney

Both documents provide the named person to act like you in case you are not available. Both documents are extremely powerful … be sure you have the correct person named. Both documents can be an invaluable part of your Estate plan … be sure we have a copy too, for easy access. Last but not least, both documents are relatively simple, and usually only a couple of pages in length.

Have a Great Monday!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

 

June 2014 Financial Planning Tip and Economic/Capital Market Update (Video)

Here is our monthly review video with a special Financial Planning Tip of the month as well. For those newbies, we round out each month with a Financial Planning tip from the trenches as well as a review of the most important Economic and Capital Market events. It all kicks off with a video summary that includes extra thoughts and more specific points with words rather than letters.

So here we go!

VIDEO

 

VIDEO Direct Link

VIMEO Direct Link

 

FINANCIAL PLANNING TIP OF THE MONTH: Dust Off those Estate Documents

Who says spring cleaning has to happen in the spring. If you have not reviewed your Wills and Estate Documents in 5 years, the time is now.

  • Will
  • Trusts if applicable
  • POA – Power or Attorney (Financial and Medical)
  • HIPPA (release of medical information)
  • Living Will – DNR (do not resuscitate) – AKA Cease and Decease (Un plug me doc)

These are your key Estate Documents … Be sure they say what you want them to! Take 15 minutes, to review, if you don’t have time, we will be glad to help! We always like having a soft copy in your personal vault for your and our quick reference too!

David V Goliath Political Situation

Wow….tea party folks take note, a relatively unknown takes out a staunch incumbent at the primary. This should make for very interesting fall elections.

Eric Cantor defeated by unknown David Brat.

 

Cantor V BrattOur suspicion is increased tension going into the fall. While uncertain how this plays out, let’s keep this on our radar.

Surprise No Interest Rate Talks – CPI

After exhausting many, including ourselves at times, 10 year interest rates have moved back up to a zone that is more comforting to us FOR NOW, however, just like clockwork, a hot CPI number posted to grab our ADD (attention deficit disorder) attention.

We are watching closely, here is a deeper post too.

6-17-14 CPI no revisions

Have a Great Day!

John A. Kvale

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

 

Newsletter Complete ….Traveling Lightly Tethered….Earnings Season is on Deck

The Q 3 2012 J.K. Financial, Inc. Newsletter is posted on our website and in the mail to you for your review at your leisure. We think it came out super and hope you like it as well.

Bonds In Focus

This quarter’s Newsletter is dominated by fixed income/Bond stories as we remind everyone that values can go down slightly as rates climb.

Very Personal Estate Story About the Need for a Will

You will also find a very personal story of my experience of a family member that did not have a Will and why everyone needs one. Learning from our mistakes !

Merkisms From the Roundtable as well

A summarized review of the Axel Merk event is also part of the Q 3 2012 Newsletter and starts the discussions which we will continue through the summer.

Out of Town

I am out-of-town today and next week, this time lightly tethered via the wonderful world of electronics. Tennis tournaments and visits will occupy my east coast time zone travels (feel like the mornings last forever.)

Earnings, Next week

Next week brings more earnings and confessions as S&P 500 companies begin to report in full force. Tethered or not, earnings season is always interesting and especially when we are at inflection points. I will be watching very closely and Summer day fieldlook forward to capital market participants reactions…..But Hey, that is next week…Today is another wonderful Friday Summer Day, Enjoy Yourself…You Deserve it !

John Kvale

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

TOD (Transfer on Death) Handy, Helpful, but not the Holy Grail

Recently we have been receiving questions concerning TOD (Transfer on Death) account titling at a higher than usual rate. Our suspicion is opportunistic fiscal cliffer’s may be accidentally inaccurately describing this tool.  Never afraid to simplify and clarify an idea, you know us…we will take the bull by the horns, so here goes a quick review of the TOD Title.

A TOD title is used to add a beneficiary to after tax/non IRA assets that would not otherwise have such a directive. If easier you can think of adding a TOD to an investment account as a similar outcome of the beneficiary designation that your IRA has. A TOD directs ownership of the account immediately to said beneficiary upon presentation of a death certificate for the original account owner. Sounds easy and simple, but here are a few items to review before you step into such titling.

  1. There are no special tax savings by utilizing this title (Our fiscal cliff accidental communicator possibilities)
  2. Overrides your Will directives (When you title a TOD, the Will no longer controls the account)
  3. Death Certificate is necessary to process (This may take longer than probate in some scenarios)
  4. May strangle the executor from expense cash (If everything in an Estate has a directive/beneficiary, there may be no funds remaining in the Estate to pay short-term ongoing expenses)
  5. Not all (but most) states allow TOD (Be sure to check your state laws before utilizing a TOD title)

We hope this will help with the contagious confusion running somewhat rampant out there currently.  Feel free to forward this to someone who may find it of interest.

Have a great day !

JK

214-706-4300
http://www.jkfinancialinc.com
8222 Douglas Ave # 590
Dallas, TX 75225