Brooke Astor died in 2007 at the age of 105. However, after allegations arose in 2006 claiming that her son had been mishandling her affairs as her legal guardian, the question of who would run her estate after she died has been in doubt. Much of that doubt was removed after Mr. Marshall was convicted of stealing from his mother three years ago and sentenced to one to three years in prison. Though he is currently appealing the conviction, the terms of the settlement brokered by the New York office of the Attorney General will apply regardless of the outcome of the appeal.

Under the terms of the settlement Mr. Marshall will receive $14.5 million of the original $31 million inheritance he was going to receive. He will also play no role in the creation or management of the Brooke Astor Fund for New York Education. This fund will be started with a $30 million endowment from the Astor estate. The rest of the estate funds will go towards other charitable groups such as Central Park and city playgrounds located in New York City.

The best way to ensure your inheritance wishes are met is to always speak to your estate planning lawyer whenever you make an inheritance decision. Even though you may know what you want, you may not be aware of the best way to ensure that your wishes are met. Your attorney will be able to advise you on what you need to do.

Tip 2: Use specific gifts carefully.

Let’s say that you created a Will soon after the birth of your daughter. In it you decided to give her your home as part her inheritance. Decades later you decide to sell your home and move to Florida. What happens to your daughter’s inheritance now that you no longer have the specific property you left her in your will? In legal circles this is known as ademption. It effectively disinherit your daughter because the property you left is no longer yours. In order to prevent this you will need to either regularly review your estate plan or create a plan that does not base inheritance only on specific named gifts.

Tip 3: Don’t assume your inheritances only come from your Will.

Today, many estate plans avoid passing property through a last Will and testament as much as possible. Basing your inheritance choices solely on the property distributed according to your Will can leave to an unintentional inequality. Much of your property, such as joint property you own with someone else and property that has a right of survivorship, will not be covered under your will. If you fail to take this property into account when choosing who receives an inheritance, this can lead to an imbalance that you may not have wanted.

There are an endless number of charities that support numerous different causes, each of which is important. It’s not possible to donate money to every worthy cause, so you should pick one, or several, with which you most strongly identify.

Step 2: Research the charity.

Not all charities are equal, and some of them are downright dishonest. The American Institute of Philanthropy recommends that at least 60 percent of any donation should go to the charity itself and not to overhead or other expenses. Research your potential charities carefully before you make any decision about who should receive your money.

Step 3: Determine the amount.

Always make sure that the amount you give to charity is something that you are comfortable with. Though the charity may want more from you, you must be happy that your estate plan meets your other desires, such as providing for your family, children and loved ones.

Step 4: Write it down.

Once you have decided on the charities you want to donate to, make sure you inform your estate planning attorney so he or she can make adequate inclusions in your plan. It isn’t enough to simply express your wishes to donate to charity after you die, and you must create some concrete form that records your wishes. This is typically done by creating a last will and testament, trust, or other instrument through which you can give a donation.

Question 1. What is a gun trust and why would I need one?

Under the National Firearms Act, the sale, use and transfer of specific types of firearms is restricted. These firearms include sawed-off weapons, automatic rifles or machine guns, as well as silenced or suppressed weapons. Owners of these types of firearms can use a gun trust to avoid certain procedures required under the law, making it easier to transfer your weapons as part of your estate.

Question 2. Why is it called a gun trust?

A gun trust is a form of revocable living trust, and in that respect it is the same as other trusts you may form. The trust has a trustee that will manage the firearms, a beneficiary who can use the weapons, and a trustor who creates the trust. However, not just any revocable living trust can be used, as the gun trust must contain specific provisions that allow for the firearms restrictions under the national firearms act.

Question 3. Can I make my own trust?

While there is no legal requirement you hire a lawyer to create your gun trust for you, violating federal firearms laws can pose significant penalties. For example, if you do not create your firearms trust correctly, the trust may be deemed to be invalid in any transfers made, which could result in criminal sanctions such as fines and even imprisonment. You should speak to your estate planning lawyer if you want to create gun trust so you can be sure you do it correctly.

Damaging Myth 1: I don’t need to create an estate plan because I’m not wealthy/old/sick.

Reality. Of all the estate planning myths, this one is the the most damaging. Every adult aged 18 and over can benefit from some estate planning efforts. Even if you don’t have a lot of property, you will want to have an estate plan in the event you get sick or die prematurely. If you have children, your need for an estate plan is even greater as only an estate plan can allow you to take specific steps, such as naming a replacement guardian.

Dangerous Myth 2: All I need is a will.

Reality: Though a will is a key part of every estate plan, is usually not enough. There are some questions that a will cannot answer, such as the kinds of medical care you want to receive if you suffer from a disease that prevents you from expressing yourself. To get a better idea of what a complete estate plan entails, you should speak to an estate planning lawyer as soon as you can.

However, Nebraska lawmakers have recently introduced a bill that would make it the first state to adopt a law directly addressing digital estate planning issues. The proposed law states that an estate executor, known as a personal representative, will have the authority to not only access a decedents social media and e-mail accounts, but will also have the ability to control and dispose of these assets as he or she sees fit.

Currently sites like Twitter, Google, and Facebook have varying procedures involved when a member dies leaving behind an account. For example, Facebook will memorialize a deceased person’s account once it learns that the person has died, while Google and Twitter require notification from an executor that includes a copy of the death certificate plus other forms of notification.

Though the bill has not been approved or signed into law, it appears that this is the first kind of legislation introduced into a state legislature anywhere in the country. As digital assets become increasingly prevalent in estate planning issues, it appears likely that other states may follow with different forms of legislation.

• Will

You name guardians for your minor children in your will.  Be sure to get the guardian’s permission before naming them.  This best ensures that the guardian will serve when needed.  Name back up guardians as well, just in case your primary guardian is unable or unwilling to serve when needed.

• Revocable Living Trust

Minor children cannot inherit directly; they, however, can be named as beneficiaries of life-time trusts that provide for their needs and are managed by a trustee.   When your child becomes an adult she can act as a co-trustee.  These assets can even be asset protected, so they can’t be taken in a subsequent divorce, bankruptcy, business failure, or lawsuit.

• Stand-by Guardianship; Child Care Power of Attorney; Temporary Guardianship Authorization

Stand-by Guardianship; Child Care Power of Attorney; and Temporary Guardianship Authorization are all names for the same document.  Because the guardians in your will only have authority to act if you are deceased, you need to authorize these same guardians to care for and make decisions for your children if you are alive, but somehow incapacitated, and unable to care for them.  Again, name contingent temporary guardians.

• First Responder Authorization

The First Responder Authorization authorizes trusted friends and neighbors to stay with your children until your named guardians arrive to take them into their custody.  Include trusted friends and neighbors who can get to your house within 15 minutes.  This is about how long the police will stay in your home before taking your children into protective custody (i.e. foster care.)

If you are the parents of young children, you need comprehensive estate planning, incorporating these documents.  Be sure to consult with a qualified estate planning attorney.

Living Trusts and Income Taxes

There are no income tax advantages to creating a living trust. You will pay income taxes on the income the trust earned since you have a control and interest in the trust property. In fact, your social security number is the identification number for the trust, and the trust’s income and finances are normally reported on your personal income tax return.

This is the case since a living trust is a revocable trust, and as long as you retain the power to revoke or modify the trust, it is still considered yours for tax purposes. But when you die, you can no longer pay income taxes, so the trust becomes a separate tax entity and pays its own income tax.

Living Trusts and Estate Taxes

Assets in your revocable living trust will be considered part of your estate and will be subject to estate tax. Whether estate tax will have to be paid will depend on whether your estate is valued above or below the current federal estate tax exclusion amount at the time of your death. While this amount in 2011 and 2012 is $5,000,000, the law is currently slated to change at the end of 2012, so the future exemption, once again, is uncertain.

If you control the trust – you, or your estate, will pay income and/or estate taxes on the assets in the trust – just as if they were personally owned by you – but an irrevocable trust can be a whole different story. It is important to note that, for a married couple, a revocable living trust may double the amount of money that you can pass tax-free, depending on what year you pass away.

While a living trust can be a powerful estate planning tool, it’s important to know the facts and use it for the right reasons, and a trust attorney can help you find the right trust for your needs.

The popularity of do it yourself will kits and forms has increased over the past decade, but there are four things that may be missing from this estate planning document that can make a big difference on how smoothly your estate is ‘settled.’

Successor Executors and Guardians

Naming an executor and a guardian is an important part of drafting a will, but what happens if your choices are unwilling, unable or even unavailable to serve in that capacity? Naming backups, or successors, is critical to keeping these choices within your control.

Bond Waivers

Many probate courts require the executor of an estate to post a bond to ensure the estate and its assets are protected and debts are paid. Without a will that explicitly waives the need for a probate bond, courts may mandate their purchase, meaning more time and expense for your executor and your estate.

Contingent Beneficiaries

Unfortunately, wills aren’t updated as often as they should be. Life changes, and your estate planning documents should change with it. A will should have ‘backup’ beneficiaries in case one or more of your named beneficiaries has since passed away.

Self Proving Affidavits

A will needs to be properly witnessed by at least two parties. A self proving affidavit is an attached document signed by a notary public that shows the will was properly signed and witnessed and that it is the will of the person who signed it. Many states accept these affidavits in lieu of actual witness testimony, and it avoids the time and expense of the executor having to track down the witnesses.

An estate planning attorney can help you create a will that not only has all of the aspects that help your loved ones get through the administration of your estate, but they can work with you on other estate planning tools that meet your needs.

If I have a will, my estate avoids probate.

Unfortunately, this is not true, in fact, part of the process of probate is validating the will of a deceased. There are other estate planning tools that do allow certain types of property to avoid probate, such as using a living trust, but you will still need a will to name an Executor for your estate and a Guardian for minor children.

If you do not have a will, the State takes your estate.

If you do not have a will, which is known as dying intestate, the state laws of intestacy determine who inherits your estate based on their relationship to you. The Colorado law governing intestate distribution is written to reflect what most people would put in a will if they had actually written one. The distribution is a matrix of who is entitled to the property based on how closely they are related to you, however, if no living relatives can be identified or located, the estate may ‘escheat’ to the state.

Wills begin with “I, __________, being of sound mind and body”.

This phrase is often used for theatrics, and is not normally the actual first line of will. In fact, the first line or phrase of a valid will is known as the exordium clause which identifies the maker of the will, declares that the document is meant to be a will and declares the testator of the will intends to revoke prior wills.

To disinherit a child, leave him or her just $1 in your will.

It used to be thought that by leaving a pittance to a child within a will you would prove that the parent did not unintentionally overlook the child’s inheritance while preparing the will. In a modern will, a provision would be drafted within a will acknowledging the existence of the child and stating that you intentionally are not providing for the child in the will. This provision can only be used for adult children, as many states have laws in place that do not allow minor children to be entirely disinherited.