Desert Estate Planning Law Blog

Estate Tax Odyssey 2010 Part III

Daryl Binkley — Mon, 11 Jan 2010 22:25:27 -0800

Well it is 2010, and the legislative branch balked on the issue of the estate tax for 2010. So, as it stands 2010 is still an estate tax-free year--for NOW. But, there is much talk that a law may be put in place that would be retroactive back to January 1, 2010.

Whatever the government decides to do with the estate tax issue this year, (or not), it will be interesting to watch. Perhaps the only thing more interesting than how the estate tax issue plays out this year, is how it will play out in 2011.

An article posted on Forbes discusses how in some extreme cases, making gifts right now might be tax advantageous. I think another practical issue regarding gifting strategies deals with the fact that some assets, particularly real estate, may be valued at very low levels, so if you do make a gift, given the reduced property values, your gift is of less value.

Given the state of the economy, the unknown nature of the future of the estate tax, and whether the estate tax will be applied retroactively in 2010, any decisions in regards to gifting and estate planning should be analyzed in relation to the objectives of the parties involved. What might be beneficial to do for one estate may not be beneficial for another--based upon the size of the estate and the basis in the estate's assets (that are considering to be gifted, for example)..

Bella Plays with the "Tub Kittens" at the Animal Samaritans SPCA in Thousand Palms

Daryl Binkley — Mon, 23 Nov 2009 11:26:10 -0800

My daughter, Isabella loves animals. So far, she has not seen a cat, dog, horse or fish she didn't like. In fact, she can spend all day playing with our neighborhood dogs and cats. So when I told her recently we will have a chance to tour the Animal Samaritans SPCA operations on Ramon Road in Thousand Palms (a place where she could see animals, specifically cats and dogs) she was super-excited. As a member of the Animal Samaritans’ Planned Giving Advisory Council I also wanted to experience the organization from the “front-line trenches.”

We didn't plan to stay as long as we did, but we left with so much appreciation for the people who run the place, the veterinarians and support staff who care for animals that are brought in for check-ups, surgery or vaccinations, and the volunteers who help out this wonderful organization.

As a parent and animal lover, I felt it was important for my daughter to see that there are so many animals in need of shelter. And that these wonderful pets are as lovely and sweet as our own dog at home. My mom adopted a pet from here, and I am pretty sure that our next pet will come from this place as well.

As we strolled to look at the clinic, one of our guides Richard Martin, the Director of Operations, shared with us that on average the clinic provides more than 8,500 surgeries each year, which is one the highest number of surgeries compared to other similar organizations in California. And in late September construction workers poured the first layers of cement for the new Animal Samaritans' vet clinic.

Mr. Martin said, "We are very excited about the new clinic being built as we will be able to better serve our community with affordable vet care and realize our mission to assist in the elimination of animal homelessness." The new facilities will be state of the art.

He continued on by saying, "Our facility is so busy and we are grateful for our staff, volunteers and everyone who helps our organization." The organization also has a great amount of events.

Each animal at the shelter has their own story. There was a beautiful gray cat "Pretty", a survivor of hurricane Katrina, there was Samba, a cat so beautiful and mysterious that we wanted to take her home (Pretty has already been adopted—YEAH!). In a separate room we met the "tub kittens"—15 kittens who were left in front of the Animal Samaritans building one early morning in September in a medium-sized tub sealed shut with packing tape. Luckily, they all survived and are now lively, playful kittens hopping and jumping around. We met a super sweet dog, Isabella (yes the same name as our daughter), who was so excited to see visitors.

"Our volunteers and foster parents are here to take care of animals and provide so much needed love and care, before our pets are adopted. Donations and financial contributions are much needed but if those are not an option for you, volunteering and foster parenting are great ways to get involved" said Sandra Viden-Martins, Director of Development at Animal Samaritans SPCA.

"Our Animal Assisted Therapy volunteers bring their own temperament tested animals to various communities, from senior centers to children with disability, and what they do for others is truly amazing," continued Sandra

Besides volunteering, there are other ways to help this organization, such as providing for the Animal Samaritans SPCA in your estate planning documents, such as a will or trust. Planned giving provides funds for community-wide services of Animal Samaritans SPCA. Just remember to include the name of the charity in Thousand Palms in your estate planning documents to avoid confusion with other charities in other areas that may have a similar name.

I know that many pet lovers can attest to the fact that their pets improve their well being, significantly reduce their stress, and provide companionship. You might want to visit the lovely animals there and see what they can do for your well-being. I know, I will be back there with my family soon.

Other Pictures Below:

Fewer Estates Affected by Estate Tax in 2009

Daryl Binkley — Mon, 02 Nov 2009 01:22:03 -0800

As I was browsing through various RSS feeds recently, a graph from Taxprof Blog and analysis by Tax Policy Center grabbed my my attention. According to their analysis: "In 2009, less than one-quarter of one percent of deaths—just 5,500 decedents—will leave taxable estates, the smallest percentage since at least the Great Depression."

Economic downturn, recession and a huge drop in real estate values in California (and elsewhere) have certainly affected the overall wealth of people--for so many, an estate tax might not be an issue of concern. In my own practice I have certainly seen that people are not as concerned about estate tax (as they were just a few years ago) but on top of their list of concerns is avoiding probate.
Probate is one the most common questions I get in my law practice. Click here to learn about essential things to know about probate.

Probate: The California Government's Estate Plan for Procrastinators

Daryl Binkley — Tue, 20 Oct 2009 11:07:06 -0800

"THERE’S HELL, AND THEN THERE’S PROBATE” is a J.J. Childers, J.D. quote from his book Asset Protection 101. To me this is a joke that makes me smile and cringe at the same time. In the text, Mr. Childers goes on to add that “thanks to the probate process you probably wouldn’t wish the job of executor on your worst enemy.” Yet individuals who have a modest amount of real property titled in their name alone, and procrastinate away their estate plans, will lead their loved ones straight to a government imposed estate plan in a system, that’s well, a hell.

While the joke may seem exaggerated and extreme, it certainly rings true for people I talk to that have experienced nasty probates, especially contested probates.

In my practice, the topic of probate brings up a lot of concerns by people that come to meet with me, in fact, questions about probate are some of the most common ones I receive. Some people have no idea about what probate involves, others have experienced it first-hand and become quite versed in the procedure. I find that many people know enough that they want to avoid it, but then have some misconceptions as to what will avoid a probate.

First, as already stated in the opening paragraph, if you have a modest amount of real property in your name alone, for example, a house worth $120,000.00, then having no estate plan—means you have opted for the government’s plan of distribution—probate. So if you think you have no estate plan, that’s Ok, the government substitute’s one for you—formally called probate. However, if you are the same individual with the same home, but have formalized your estate plan with the use of only a “Will” then guess what—you still will have a probate.

Clearing Up the Misconception about “Wills”

From my experience, I find many people expect that a “Will” will avoid probate. A “Will” will not. I like to clarify the misconception with my own joke—that if you are single and have modestly valued real property titled in your name alone (i.e. as an individual), then generally speaking, having a “Will” alone is like having front row tickets to the probate court. Of course, as most of my jokes, it is not that good, and the reality is much worse.

If you have never heard of probate and are not sure what it is—the simple explanation is that it is a government process or system administered through the courts that helps in the orderly distribution of your assets after you have passed away (of course making sure that creditors and various governmental agencies get paid, too). The probate plan works if you do not have an estate plan (assuming you have assets of a certain value and titled in your name alone), but it even controls estates where the decedent left only a Will as their main estate planning document.

Some states are considered probate-light, where the fees related to probate and procedures are not as extensive and time consuming, at least so I have heard, but California is not one of them.

4 Things you should know about probate

1) Cost: Probate costs are based on the size of the estate, and there are statutory fee schedules for attorneys and executors to charge certain amounts, and on multi-million dollar estates, legal fees are usually held to a “reasonability” standard. Of course, there is an opening for “extraordinary” legal costs when contests come up.

2) Time: For estates with a modest amount of assets, a probate can easily take 2 years or more, and even longer if a contest arises. Hopefully, if you have a smaller estate and have no disputes, then maybe a probate could be very fast at a year to 18 months. Recently I met with someone that has been going through a probate for almost the last 10 years due to contests. The legal fees in these contests reduces the amount that your heirs will eventually receive.

3) Loss of Control: a judge you have never met or who doesn’t know you or your family will be ultimately making decisions as to how your assets would be distributed. As we all know, someone might look great on paper and might seem like the obvious choice to be an heir of your estate, but it may not be the person you would choose to receive your assets.

4) Loss of Privacy: Your family matters (think “dirty laundry” in the soap opera context) and potentially the extent of your assets could become part of the public record.

4 Tips on avoiding a probate

1) Trusts: Generally the most efficient and the most recommended way of avoiding probate is through the use of a “Trust.” There are costs associated with creating a Trust and administering a Trust but these are usually significantly less than the costs of a probate.

2) Proper Titling: Titling assets in a non-probate form, generally married couples have a lot of options to avoid probate if one spouse passes away—of course the danger to those forms is if both spouses are killed in an accident at the same time—two probates!!!

3) Gifts: Gifting your assets during your lifetime

4) Live forever!

Of course, California is trying to do more to make probate a more effective system, but why not just avoid it, if possible?

Lost Wills, Lost Trusts, and Missing Estate Plans: Sending Your Heirs on a Treasure Hunt

Daryl Binkley — Thu, 01 Oct 2009 15:56:24 -0800

Very frequently I receive calls from people who are trying to locate a will or trust of their parent or loved one(s) who just passed away. They are not able to locate any trust documents or have any information about the attorney who created it. Once, after doing some research for a particular family, I found out that the attorney who created a trust had passed away before his client (then there was the job of finding where the deceased attorney's files went).

There are numerous cases of "lost wills." My personal favorite is digging around a person's property after they passed away, looking for a will that was supposedly buried in a container. Maybe a myth or legend, but it sets a graphic image.

Just this week I have a received a few phone calls about this exact issue. Families were trying to locate local attorneys who worked on trusts for loved ones by calling every attorney in the area. These random inquiries from other lawyers or loved ones make me think this is a problem for many people, or it might be down the road.

So what are some possible solutions for this problem? The following are tips to ensure that you or your loved ones do not fall into the abyss of lost documents:

Tips for Couples or Individuals Creating a Trust

Give basic information that you created a trust to at least one or some of your loved ones. If you feel comfortable you might want to let them know of your wishes, desires and reasons why you made specific decisions about your assets.
If your beneficiaries are also trustees, provide them with information on where the trust is located (especially if it is locked in the safety deposit box) and information on what they need to do if something is to happen to them. Also provide them with the contact information or business card to your attorney that drafted the trust. You might want to give a copy set to your trustee so they know all the details. Attorneys will have copies of client trusts in their files as well.

If you don’t want your kids or beneficiaries to know the exact location of your trust or what the contents of the trust are, at least ensure they have contact information for the attorney that created the trust. Without this basic information, your kids /beneficiaries might be calling every attorney in the area trying to find this information. Or worse, they may need to pay another attorney to help them with this search.

Tips for Beneficiaries/Trustees of a Trust:

Have a heart-to-heart talk with your parents or loved ones about their wishes and desires on how things should be handled in the case they are not around. If your parents don’t have any legal documents set up about their health care decisions and assets, you may want to suggest that they seek an estate planning attorney. Ask your friends and/or professional advisors for references or recommendations.
If you know that your parent(s), loved one(s), or partner(s) have created a trust and that you are a beneficiary, ask them for the attorney contact information.
If your loved ones are comfortable with it, they might even tell you where their estate planning documents are stored or even give you a copy of it.

Estate Tax Odyssey - Part 2

Daryl Binkley — Sat, 19 Sep 2009 23:00:12 -0800

As we are approaching the last quarter of 2009 and 2010 is just a few months away, I expect to hear more and more comments about estate tax and its fate in 2010 and beyond. As I commented in my previous post , the estate tax is currently set to disappear in 2010 and then re-emerge in 2011 at pre-George W. Bush rates, with a 55% tax on the portion of an estate over $1 million.

Just today, in WSJ, Jonathan Weisman wrote an article entitled "Estate Tax Faces Its Own Life-and-Death Struggle", highlighting how the current political climate and political parties might be dealing with a tax set to disappear in 2010 and the expectation of additional tax law changes in 2011.

As mentioned in the article, the debate over healthcare has pushed discussions about estate tax issue to a second tier level, but what I found interesting is that central players on the estate-tax policy also have key roles in the healthcare debate. As it stands now, President Obama has proposed permanently locking in the estate tax at the current 45% with a $3.5 million exclusion but some might worry (as stated in the article) that some politicians might block any action in 2010 to ensure the tax will return in 2011 at the 55% rate with a $1 million exclusion.

Also the stock market fluctuations and deep declines in real estate values may let politicians have a different view on where to tax estates since a dollar today arguably goes further (at least in reference to real estate) then it did a couple of years ago.

So how might all this affect you, if the laws remain unchanged:

· In 2011, more estates will have to pay the estate tax since the exclusion drops from $3.5 million to $1 million.

I am sure we will hear more about this issue, so stay tuned…

Social Networking, Blogs and Seniors

Daryl Binkley — Wed, 16 Sep 2009 12:29:25 -0800

Many of my clients frequently comment how they first found me online, such as through my blog. Some of them related to my posts, so much so, that they felt they knew me before even meeting me in person.

So when I stumbled upon the recent post from Home Care Palm Springs about Why Are Seniors Social Networking?, I was not surprised. After all my mom (who is a senior), has been active online for over a decade. She even met her husband online -- very progressive of her, if I may add. The post mentioned 5 reasons why seniors enjoy social networking, one of them being "bridging the generational gap" which might explain the popularity of Facebook and My Space. On Facebook you can find teens, parents and grandparents all connected regardless how far away they are from each other. Just yesterday, the CEO of Facebook Mark Zuckerberg reported on his Facebook Blog that Facebook now serves 300 million people across the globe. And that number will surely rise.

Back in February, Inside Facebook, an independent blog that covers Facebook activity, reported the number of women over 55 who use the site had grown by 175.3 percent since September 2008. (Male users in that age group increased by 137.8 percent.) Additionally, Facebook’s advertising site estimates that there are now more than 4 million users between the ages of 45 and 65 in the United States alone. Some sites, like Eons (similar to Facebook in style and purpose), are solely for boomers.

Recently I heard a great explanation of social networking from Steve Love, a local real estate agent. He said that social networking is like a big cocktail party. People who enjoy it & benefit from it, treat it as such. I certainly agree.

What do you think?   Do you use social networking? Do you like it? Have you met new people, made new friends? I am curious to hear all the good, the bad and the ugly...let me know.

Want to connect with me and Ana? Friend us on Facebook and connect with us on Linked In by clicking on links below

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Moving Time

Daryl Binkley — Fri, 28 Aug 2009 21:20:29 -0800

Well, here it's Friday night at 9:21 pm and the Law Office of Daryl L. Binkley has a new physical address as I write this Blog about moving.

I was online in my previous office just about 4 hours ago, and now I am in my new office using my wireless keyboard, with my wireless laptop, surfing the Internet wirelessly and I'll print out my Blog wirelessly. Now the whole wireless thing is not special or new. The amazing thing is the smooth transition--that with the first try of hooking up all my wires, turning on my computer, and then clicking the Internet Explorer button did the Internet work for me--now that is SPECIAL. I honestly have to give Kudos to Verizon, they have made for a smooth transition.

Anyways, here is my new physical address:

77-564 Country Club Drive, Suite 246
Palm Desert, CA 92211

Ethical Will

Daryl Binkley — Sun, 12 Jul 2009 23:24:11 -0800

As I watched Dr. Andrew Weil's “Healthy Aging" DVD over the weekend I expected to hear tips on a healthy diet, exercise, maybe some recommendations on vitamins and/or supplements--but what really got my attention, being an estate planning lawyer, was his recommendation of an ethical will as "a gift of spiritual health."

Unlike other estate planning documents that specify your wishes regarding your assets and medical decisions, an ethical will refers to transferring your values, experiences and personal stories to your family or community. It is an intimate and more personal document that doesn't have a legal standing, but in some circumstances it might even be more cherished by your loved ones.

Ethical wills have a very interesting and long history tracing back thousands of years. You can find a historical overview of their origins and uses through medieval to modern times by clicking here.

Today you can find many free resources on the Web on how to start writing an ethical will, but in essence you can start writing it at any point, and then whenever compelled keep adding to it. As a highly personal letter, it can contain your most cherished memories, favorite quotations, desires and wishes for you children and grandchildren, reasons behind certain decisions or perhaps little known details of your life. It can contain life lessons you learned, people who had the most impact on you and why or might be something entirely different but relevant to your life.

Creating a meaningful legacy is really what estate planning is all about (you can find my blog on this topic here) and the addition of your personal story or letter can only add to that legacy.

Decisions that Last a Lifetime...Or Longer

Daryl Binkley — Sun, 05 Jul 2009 22:57:42 -0800

Apparently Michael Jackson nominated his mother to serve as the legal guardian of his kids in the event of his death, per his will lodged with the probate court and distributed through Internet sites.

His will was executed in July 2002, 7 years ago exactly as of July the 7th. The question I wonder is the following: Does this will really reflect what he would have wanted for his children as of the past year or so? Maybe it does.

But given how much he seemed to change over his own lifetime across so many areas of his personality and persona, it is surprising that he hadn't changed his will more recently.

So, essentially whatever he was feeling in July 2002, will now rule the lives of his children--through the choice of legal guardians, and potentially how financially he has provided for his kids in his trust, which may or may not have also been updated since July 2002.

Is it Time to Rethink your Estate Plan?

Daryl Binkley — Wed, 24 Jun 2009 23:28:30 -0800

I lived in San Francisco during the "Dot-Com" Bubble and Bust from 1998 to 2002--and even though that downturn was real and painful for all of us living in the Bay Area (and all those heavily invested in tech stocks)--it didn't affect everyone across the country as much as the present financial downturn.

Ever since that tech meltdown, I became interested in bubbles, how are they created and why. So when I recently read more of Robert Shiller's thoughts, a Yale professor who is given some credit for predicting both the tech and housing flameouts with unnerving accuracy I was interested to learn more about him, see the recent article about home prices in the U.S.

On my list of books to read soon are the following books by Mr. Shiller, one published just before the tech meltdown and the other before the sub-prime mess morphed into a full-fledged global meltdown: "Irrational Exuberance" and "The Subprime Solution: How Today's Global Financial Crisis Happened and What to Do About It," respectively speaking.

As bubbles tend to inflate our assets and the ensuing busts tend to painfully deflate our assets, during these challenging economic times it is good idea to re-evaluate your estate plan and see if you are employing the correct strategies to leave a legacy you want. In the recent article by Money Magazine it was stated that "according to estimates by the Federal Reserve, average household net worth dropped nearly 23% from a survey period starting in May 2007 to October 2008". I would estimate that percentage is higher now, 8 months later.

So what does this mean for your estate plan? The article provides some great ideas but the main point is that this might be a good time to rethink, re-evaluate and talk to your estate planning attorney to ensure your legacy and wishes are protected.

King's Estate Not So Dreamy for DreamWorks Studios

Daryl Binkley — Fri, 22 May 2009 15:51:33 -0800

I blogged about Dr. Martin Luther King's estate dispute among his children back in October 2008.

And just this week, disagreement among the children was brought into the spotlight again. This time around DreamWorks Studios announced it will back out of plans to produce a movie about the Rev. Martin Luther King Jr., unless King's three surviving children settle their differences over the deal.

As stated in the recent news article: "The latest public rift between Dexter King, the chief executive of the King estate, and his brother and sister -- Martin Luther King III and Bernice King -- erupted Tuesday, May 19 2009 after it was made public that Dexter King, 48, had finalized the deal with DreamWorks. Martin King and Bernice King have complained in court filings that Dexter King has acted independently for years on estate business matters, refusing to call a family meeting. Over the past year, angered over Dexter King's move to publish their mother's love letters, neither Martin King nor Bernice King has spoken to Dexter King, the source close to the family said.Dexter King, in a written statement Wednesday evening, said he has 'always upheld my duty' as CEO of the King estate to communicate with the others."

Years after Dr. King's death, the disputes are still going on with his estate and his legacy. In large estates, disputes among children might lead to contentious time consuming and costly litigation. But even for those with moderate estates, contentious and expensive litigation can still occur. It is better to create an overall estate plan that includes no contest provisions within the documents. These provisions should help avoid and deter many of the costly lawsuits.

I am sure there will be more updates on this matter...stay tuned...

Choosing an Assisted Living Facility in the Desert Just Got Easier for Yourself or a Loved One...

Daryl Binkley — Tue, 05 May 2009 10:14:09 -0800

Sometimes it takes an illness, or an array of health issues to push us to plan as to what we would like to do with our house, assets and how we would like our money to be passed on to loved ones. Procrastination is the number one reason why people delay making decisions regarding their estate plan--and the same can be said about their long-term care options.

Health care decisions affect estate planning and finances--making families easily feel overwhelmed with the number of decisions needed to be made in choosing an appropriate board and care residential living facility option that would meet the wishes and lifestyles of those involved. As families embark on that search, an array of questions arise. Where do you look? How do you start and how do you evaluate the various assisted living facilities, and finally how do you compare them and make a final decision?

Recently, I had the good fortune of meeting with the founders of KLM Group Services, a new healthcare consulting company. Lawrence and Karen Morrissey who started the no cost referral services company desired to make the "Board and Care homes" search easier and more effective to the residents of the Coachella Valley. Lawrence (Larry) was dealing with some health care issues of his own and started to research and review the Board and Care facilities that were available in the Desert, when he realized that there were little to no standards for rating board and care facilities.

As a former healthcare executive, Larry thought it would not only be advantageous to the client and family, but a great help to the community to establish professional standards of "Board and Care homes" in the Coachella Valley. According to Larry, he decided to establish a set of accreditation criteria for inspection standards that would include potential preferences from social, lifestyle and personal options for each home. Their "strict accreditation standard" is currently used for the personal inspection of each home in their services network of Board and Care facilities making the search not only easier for the families, but increasing the level of trust and confidence that their loved one is placed in the a home which has been rated according to superior standards.

Almost a decade ago, my grandmother was in a Board and Care facility in Cathedral City and so I think providing some criteria of the homes is a great idea, and I believe this is a valuable service for desert residents that need this option for themselves or a loved one. You can find out more about Larry and Karen Morrissey and their organization at www.klmgroupservices.com.

Giving Meaning to Your Estate Plan

Daryl Binkley — Sun, 19 Apr 2009 21:54:52 -0800

On a recommendation from my wife, I read a book by Daniel Pink, A Whole New Mind. According to Mr. Pink, we live in a "Conceptual Age" and there are "six high-concept, high-touch senses" important now to the development of the "new mind."

A couple that resonated with me especially was "story" and "meaning" (others are: design, symphony, empathy, and play). While many things in the book resonated with me, these two really struck a cord with how I think about estate planning...

Every painting in my house has a story behind it. One is inherited from my grandmother, one from my great-aunt, some paintings were acquired on my trips to other states, and finally others in Europe. My wife personally knows some of the artists, and knows where, when & why an artist painted a particular painting. Each of our paintings has a story, a sense of history---meaning.

Is there a story about your life, you would like your grandchildren to know about? Is there one lesson you would like to teach them? Is there a reason why you are leaving that house, a painting, an antique (or anything else) to a particular person? Is there a reason why you chose a certain charity, not the other? Is there an interesting story behind some your acquisitions?

At the end, we treasure our assets, but also as important, if not more important, are our stories, and experiences--our ability to give a sense of history. Meaning of it all, in our own mind.

In my mind, estate planning can be, not just about transferring your money but more about your life, about your values and experiences. A written letter, audio CD or more elaborate video can be one intangible asset you leave (along with your estate plan) and the one that is treasured by your loved ones.

Healing Horses Announces Silent Auction

Daryl Binkley — Mon, 06 Apr 2009 17:15:39 -0800

April is National Autism month, and as awareness is increased, the Healing Horses Therapeutic Riding Center in the Coachella Valley is raising funds for its year-round activities through a Silent Auction. According to Advisory Board Member Gabriele Lawrence, "over 90% of [the non-profit's] riders are on the Autism Spectrum."

The Silent Auction is up and running now and will run through the end of April. There are various items and services available to place a bid upon (donors below in parenthesis, if not stated outright):

Bakery Gift Certificates (Pastry Swan Bakery)
Italian designer jeans (Mister Marcus, Contemporary European Clothing)
Private photography session (Janine Benner Photography)
Physical Therapy or Yoga/Exercise Session (Perry Physical Therapy)
Hair Up-Do and Makeup Application (Patrick Marchesson Salon)
Tarah Jade Boutique Gift Certificate (Tarah Jade)
Artwork: "The Water Horses" by Ray M. Shadman and donated by Mr. Shadman.
Artwork: "Pinon Overlook" by Davis Murphy (Slink Productions)
Photographic Works "Bee" and "Fox" by Rob Hock and donated by Mr. Hock
Digital Fine Artworks "Six Chukker" and "Save" by Abe3Feathers and donated by Abe3Feathers.

Review the Healing Horses Website for updated information on the status of the Silent Auction.

Autism: Legal Considerations For Those that Provide Financial Assistance to Autistic Loved Ones

Daryl Binkley — Thu, 02 Apr 2009 11:40:15 -0800

Today is World Autism Awareness Day which was established to raise awareness about autism in all regions of the World. According to the some studies, 1 out of 150 individuals will have some form of autism and while the experts and researchers nobly debate causes and cures, there is one thing for sure, everyone is aware that more resources are needed for research, education and support for families and children with autism.

Families with autistic children often need to assess and reassess how to pay for it all. Having a long-term financial strategy helps as it allows for families and relatives to help without limiting government assistance.

As government assistance comes with restrictive income requirements and can narrow a family’s financial options—here are some things to consider from legal prospective that can help with this long term planning

A simple will or gift from grandparents/relatives without more planning might be problematic. For example, leaving a cash amount through a will to a dependent adult might disqualify the dependent from receiving governmental care. Even simple trusts, could end up costing their loved ones even more than the value of the gift if needed government assistance benefits are denied.
Grandparents, parents, and other friends and relatives that want to help an autistic beneficiary should look into the appropriateness of a Special Needs Trust. A Special Needs Trust is a more complicated estate planning instrument, but does a better job passing gifts to the ones you want without causing them additional headache.
Charitable donations to these causes can have tax benefits for those gifting

Want to get involved with the desert area events and organizations? Here is a partial list of local organizations related to helping those with Autism.

Healing Horses, Therapeutic Riding Center of Coachella Valley
Coachella Valley’s chapter of the Autism Society of America (760) 772-1000 for more information.

Both routinely have events to foster local family support.

UPDATE: THE SECOND ANNUAL AUTISM WALK AT CIVIC CENTER PARK PARK WILL BE APRIL 25, 2009.

With Wall Street and the stock market in turmoil, what is the average person supposed to think of investing?

Daryl Binkley — Fri, 27 Mar 2009 14:36:19 -0800

I asked Michael McGreevy (see photo at right), Managing Director of the Indian Wells office of Private Asset Management, and past president of the Desert Estate Planning Council to do a Q&A with me to get some clarity as to what is going on with the markets, and whether there are things the average investor can be looking for, or doing right now, to strengthen their investments.

As a background, Private Asset Management produces an in-depth yearly Outlook. It was after reading the latest edition that I was inspired to do this Q&A with Mike.

DB: Mike, I really enjoyed reading over the 2009 Outlook report, especially when it starts out with the following strong paragraph:

“The Global Economy and Markets in 2008 were truly one for the record books. While conducting our due diligence for our 2009 Outlook and Sector Strategy Report, we took a look back at the events over the last year and were truly amazed. Events that were statistically impossible, became possible, and, even more, they became the norm. This has resulted in many shell-shocked investment professionals and investors. The standard playbook of looking to history as a guide is no longer valid, because events that are occurring have never occurred. That being said we find solace in our unshaken belief in the American entrepreneur and the ability of our economy to face challenging times and emerge stronger.”

While I feel I have a pretty good handle on financial terminology, I still found myself learning more about financial concepts, like those I hear about on CNBC or read in other investment articles, when I was reading over your firm’s report.

One of the concepts or themes I found throughout the report was the reference of 2009 as a “transitional year.”

Can you tell me a little more about what this means?

MM: We contend that 2009 will be a “transitional year” because we believe that the economy will be working away from contraction and toward expansion.

DB: When I think of transitional, I think of change, yet some people think the best move is to just freeze up and not do anything until the economy improves. What are your thoughts?

MM: Doing nothing is, in our opinion, the wrong approach to the problems we are facing. We would argue that investors should be aware of the opportunity to selectively invest in a variety of assets while current valuations are significantly below that of historical valuations. Our examination of current and historical valuations leads us to conclude there are some extraordinary investment opportunities available at this particular moment in time.

We can, of course, argue all day long about whether the market has hit bottom. However, if you will put that argument aside for the moment, we can make a strong case for investing at a time when great values abound. We believe that these investments will produce strong returns as the economy and the markets recover.

Speaking specifically about equities for the moment, as the economy recovers some stocks will improve more rapidly and to a greater degree than others. That means that some stocks and some sectors of our economy are a better bargain than others.

Our job as an investment advisor requires that we study the global economy with an emphasis on understanding emerging economic trends. Once emerging economic trends have been identified investment dollars are allocated accordingly.

If emerging economic trends are likely to have a negative impact on an industrial sector we would underweight when investing in that sector. If emerging economic trends are likely to have a positive impact on an industrial sector we would overweight when investing in that sector. And in the case where emerging economic trends are likely to have no impact on an industrial sector we would have a weighting that is roughly equal to that of the S&P 500 in that sector.

Use of an analogy from the game of hockey will help me explain what I mean. Just as a hockey player must always skate to a place on the ice where he thinks the puck will be, we as investors are always striving to invest in a way that allows us to benefit from emerging economic trends.

DB: That makes me think, can people always tell exactly what is going on from the financial statements they receive from their investment advisor/broker?

MM: That’s a very good question. Some statements that come across our desk for review are very difficult to read. Many appear to be designed to confuse rather than inform.

At this point it may be helpful to state that Private Asset Management believes in transparency. Our clients own publicly traded individual equity and bond securities. We do not produce or sell any proprietary products. As such, we have no motivation to invest in anything other than securities that we believe are a good value.

When you get a statement from us, it is very easy to read and understand. Some accounts that we manage hold Exchange Traded Funds. These are usually purchased for reasons pertaining to diversification. However, as a rule, we would agree with advisors contending that if an investment cannot be understood it should be avoided.

DB: You mentioned transparency, management fees, etc. Could you describe the various ways that financial advisors may charge fees.

MM: Although you may feel uncomfortable doing so, the most important question that you can ask of an investment professional is “How are you compensated?”

If, when asked this question, your advisor starts tap dancing like Fred Astaire, you should be concerned. Many of the products that investment companies sell are loaded with hidden fees. Some companies make money when trading for your account. That can lead to the ‘churning’ of your portfolio.

Our firm earns a fee for management. That fee is based upon the value of the portfolio. As such, our interests are in alignment with that of our clients. Our revenue increases as our client’s portfolio increases in value.

If you are an investor and you are doing all your own research you may be emotionally involved in you decisions. This can lead to mistakes. Or, if your research is not as thorough and conclusive as the research performed by Private Asset Management, you could be making bad investment decisions.

Private Asset Management was founded in 1992. Our performance record dates back to January of 1993. We are very proud of that record and, as such, your readers are most welcome to contact me for a performance review.

DB: Mike thanks for your time and I appreciate your candor on this timely topic.

This is the general Disclaimer that is posted at the link for the report mentioned in this Blog. Disclaimer: The material presented is of a general nature and not constitute the provision of investment or economic advice to any person, or a recommendation to buy or sell any security or adopt any investment strategy. Opinions and forecasts expressed herein are subject to change without notice. Relevant information was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy. You should seek the advice of an investment professional to tailor a financial plan to your particular needs.

Estate Planning is Not Just for the Over 50 Crowd

Daryl Binkley — Fri, 20 Mar 2009 11:06:14 -0800

There are moments in life when you become keenly aware of how fragile life is.

Just this week, the story about Natasha Richardson unexpected death from a seemingly minor accident reminded everyone of that. A mom full of life, energy, and utter vitality with a wonderful family. No one would expect her having an accident like this.

Yet life seems to hit us with unexpected surprises....While living in LA, I was made aware of this anytime I was stuck in traffic because of a big accident on a freeway. When I saw ambulances rush to the scene I would wonder about the victims and how a tragedy would affect their families, and of course immediately think about what if that was me. How would my family even find out I was in an accident, would I still be alive when they found out, what if I became paralyzed or incapacitated.

In the past year, I was at the gym one Friday evening, when a young man had just got off an elliptical machine, about two machines over from mine, and then to my shock he started to go down slowly, and seemed to me to be suffering some sort of seizure. After noticing that he seemed to be in a safe spot, I ran to the front desk to get help, after the staff went to aid the person--I called 911. The paramedics came and he went to the hospital that night. And to think he was probably between 25 and 35.

After experiencing these type of events, I would think of my loved ones and call them immediately to ensure that they are OK. Or just to say I love them. Once I became a dad, the desire to protect my daughter, to ensure she would be OK if anything were to happen to me grew exponentially.

Questions as to what would happen if my wife and I were in an accident at the same time, came to me more than once. And answers that I found, as to what would happen if there was no legal planning in place, were shocking to me....Most families with young kids have not done any legal planning to prevent disaster if the unexpected occurs. And for those few who did a will or a living trust, didn't address issues of guardianship particularly important for minor children.

As parents, my wife and I wanted to bring those issues up with local parents and are very pleased about our first workshop taking place on Sunday March 29th at My Gym, Palm Desert.

The Binkley family: myself, Bella, Ana (Photo taken at My Gym)

For the Love of Animals: Animal Samaritans Upcoming Event

Daryl Binkley — Thu, 12 Mar 2009 11:42:55 -0800

My daughter, Isabella recently started to teach our dog Boots (both pictured below)
everything she learns at her preschool: counting, days of the week, and even the pronunciation of letters from the alphabet. She sits him down, tells him stories and sometimes even asks him if he likes a particular song. It is amusing to watch the two of them together and the bond that grows between them stronger everyday. It doesn't matter that our dog falls asleep half-way through her stories or that he walks over her toys -- he is there with her and always ready to play.

When I write my blogs from home, Boots will sit up in my lap. He approves of everything I say, naturally, which is why I think he is incredibly smart....

I know that many pet lovers can attest to the fact that their pets improve their well being, significantly reduce their stress, and provide companionship.

If you're an animal lover you might be interested in the upcoming Animal Samaritans "Walk with the Animals" taking place on Saturday, March 21st from 9 am-12 pm. The money raised will help care for their homeless shelter and animals and fund the humane education program. There will be plenty fun activities for kids, pet costume contest and dog tricks. Note registration begins at 8 am.

In a previous blog post I mentioned some of the benefits of pet planning, pet trusts and charitable gifting options. There have been changes in California law regarding pet trusts, so more blog posts dedicated to pet trusts and pet planning coming up soon....stay tuned. Have a question or comment about a pet trust, charitable giving option feel free to contact me or any charity organization directly.

Congratulations to this Year's Children's Champions: Richard & Janice Oliphant

Daryl Binkley — Sun, 08 Mar 2009 17:22:07 -0800

Estate planning is generally considered to be putting in place a system of instructions to transfer your property upon your death--which it is, to a large extent. However, estate planning can be so much more than that.

It can also be about transferring values to your loved ones and/or transferring some of your property to charities so your life brings about positive changes for the community-at-large.

However, there are some people that give back to the community on a continual basis through the support of good causes.

On March 7, my wife and I attended a celebration in the honor of Dick and Jan Oliphant who received the Children's Discovery Museum of the Desert's Children's Champions award for their support of the Museum and other philanthropic activities in our Coachella Valley. The event was also a fundraiser for the museum.

The gracious and elegant couple is pictured below.

Jan and Dick holding their awards.

Sunny with museum volunteers.

Sunny with Betty Barker (Chairperson of the CDMOD Board of Trustees).

Photos courtesy of Daryl L. Binkley, Esq.