Giving a Eulogy is Hard To Do…

But Good Things Don’t Come Easy

Most people will probably say they dread giving a eulogy. This is partly because one of the biggest fears most people have is public speaking, and partly because it is so difficult and emotional to summarize a person’s life story in a series of moments. 

I recently delivered a eulogy at a loved ones funeral, and I will not hesitate to tell you that it was extremely difficult.  Afterwards I felt like I had experienced just about every emotion possible.  Some of the toughest parts were being nervous, having to reflect on my grief and loss, worrying about getting through it without breaking into tears, and trying not to forget anyone.  Some of the best parts about this was reflecting back on all of the great memories, the special people in her life, the amazing things she did for me and others, the funny stories, and being able to heal by sharing and expressing my thoughts and feelings. 

I worked so hard, for what felt like countless hours, to try to find all the right words, recall all the most important memories and stories, and mention all the key people in her life.  And to be very honest, I wish I could go back and do it again.  To this day, I still look back with regret, wishing I could go back and say some things I neglected to mention.

Tips To Giving a Good Eulogy

In the event that you…or anyone you know…needs to give a eulogy, I have put together some tips that I learned that I hope can help you:

Giving a eulogy is a good thing for you 

It may hurt to write a eulogy, and it also might be  hard to read it.  For some, that is the worst part.  The world might spin a little, and everything familiar to you might fade for a few minutes. But remember, remind yourself as you stand there that you are the lucky one who gets to tell everyone about this special person.  

You were selected to face the group, the family, the world, and summarize the story of this loved ones life.  You are the one being asked to do something at the very moment when nothing can be done. You are the one who gets the last word in the attempt to define the outlines of a life.  You are the one who gets to tell everyone who this person was, the differences they made in so many lives, and the reason their life should be celebrated.  You are the one who gets to heal through this process.

So it really doesn’t matter what you say, or how you say it.  The reality is this opportunity is both a privilege and a gift.

Don’t feel like you have to accept this offer

If on any level you are not interested in taking on this task, for whatever reason, that is perfectly OK.  Some people may choose to decline this gift for a variety of reasons.  They might feel putting together the story of someone’s life is too difficult, or too emotional.  Some people are simply too overcome with grief.  Some people may feel like they are not the most appropriate person.  Others may feel as if they are not great expressing feelings or emotions publicly. 

So know that whether you choose to accept this gift and give a eulogy, or not, there are no wrong decisions.  It is totally a matter of preference and comfort.  

Creating a eulogy will be difficult

Be prepared for the harsh reality that this will be a difficult thing to do, from beginning to end.  Writing and reading of a eulogy is, above all, the simple and elegant search for small truths.  They don’t have to be truths that everyone agrees on, or even that everyone knows about.  The should just be the ones most people will wither recognize or appreciate.  This can be surprisingly hard to make note and mention of some of the smallest of details of a life.  But some of these details can define a person, and even serve as a form of recognition.

What I am referring to is small examples like:

• She cared more about her family and her friends than she did herself.
• He loved to talk about his football team, his military background, his career.
• She never wanted to talk about herself, but rather listen and learn about you.
• He had a loud voice that could be heard across a crowded room. 
• She always said and did the right things. 
• He was never found anywhere without a cigar in his hand or mouth.
• She lived for gardening, and I will always think of her with every beautiful flower.

Don’t worry about time

They may tell you have have a specific period of time, and that there is a set schedule.   They may tell you that you have three minutes, or five minutes. They may tell you to take all the time you want.  Don’t listen or follow any limitations, as I firmly believe that time constraints are always an insult at a funeral.

Of course you want to be respectful and work within the finite space you’ve been given, and remember that the eulogy is just one part of the memorial service.  However, tell your story, express your feelings, and it this ends up being shorter or longer than others may wish, it does not matter at all.

Remember who to speak to

As you stand there, think about the room as being filled with rings of loyalty.  The people in the nearest ring, or those closest to you, likely in the front row, are owed the most. You should speak first to them. And then, in the next measure, consider speaking to room itself, which is the next ring, which is usually filled with the closest family, friends, and loved ones.  Then consider speaking to the last right, which is the physical world outside, the neighborhood, the town, the place, the groups, the clubs, the associations, the companies, etc.

So try to remember your rings of loyalty, and also try to speak to them in the order they deserve. 

Be sure to put your thoughts in writing

You must be sure to write down all of your thoughts.  In grief, people can have a tendency to wander through memories that may not be acute, relevant, well-framed, or purposeful.  Sometimes people can move off track into a personal feelings, stories or conversations that are not necessarily appropriate.  Therefore, make sure to have you thoughts documented, or at the very least a general outline.

You might be struck with emotion or cry

Giving a eulogy is one of the most emotional experiences you can go through in life.  With that in mind, you must accept that fact that you might get extremely emotional, cry, or even reach a point where you cannot continue.  But if possible, try not to give up.  Just remember that everyone who is in attendance and listening can  fully understand and relate to the fact that giving a eulogy is an extremely difficult and emotional thing to do.  And also remember that everyone admires and respects you for having your courage and contribution to express these special words with them.  

Since you may become overwhelmed with emotion or cry, this is another reason why you should have everything in writing.  This can help you stay on track, not lose your focus, and pick up where you left off should you need to stop for emotional reasons. 

One final suggestion is to have a backup plan.  Sometimes close loved ones can break into an emotional state where they simply cannot recover or continue.  If you feel like this might happen to you, make sure you ask someone to be there for you, and be ready to come up and help you finishing giving your eulogy.  Again, everyone understands and appreciates you for sharing, whether you finish or not.

Practice, practice, practice

As with any public presentation, the best thing you can do is practice this speech.  Read it aloud until you feel comfortable with the content and how it flows.  Practice and rehearse to the point where you might even be able to give this eulogy without reading if you had to. 

Another major advantage to practicing is it will help you evoke the emotions you have inside, and determine which parts are the most difficult to deliver.  This can help you prepare more intensely in certain areas, or even redesign your eulogy if you feel like you need to minimize some of your emotions to get through this.

Prepare yourself for in case something goes wrong

Often times during public speeches, especially during such sensitive gatherings as memorial services, events can occur that will throw you off course.  There might be a noise, an unexpected emotional outburst, a child crying, or the microphone failing to work properly.  Again, this is where practice helps by allowing you to stay on track and keep your composure.  If it helps, make up something you say to yourself to help you through those moments and allow you to regain your refocus.

Also, one other note is that many people choose not give a eulogy by reading everything word for word.  The use bullet points and the expand on their thoughts from each bullet point, topic, or subject.  Keep in mind this during such an emotional and sensitive speech, you may say something that feels “out of line” or inappropriate.  But like I mentioned above, that is perfectly normal, to be expected, and something to prepare for and be ready to work through.

Finally, practice speaking slowly, and during times of great importance or intense emotion, learn to pause.  A pause is good for you because it allows you to collect your thoughts and gather you composure should you need to.  A pause is also good for those in attendance because the silence helps to create a stronger and more powerful message. 

Consider using humor

For many people humor and laughs can be a pivot point in a funeral.  Especially when the deceased is someone who was known to have a good sense of humor.  Eulogies don’t have to always be about the sadness or the loss.  They can be about the funny memories, person, or stories.  

In fact, some of the best laughs come by forcing people to remember who this person really was, versus strictly “glorifying” them.   For example, one of the best ways to use humor is through telling a story about something everyone can relate to about this loved one.  This can even be about something that was not among their best qualities.  At the closing of your story, the element of surprise always brings a good laugh when you can summarize with a conclusion that no one expects.

In summary

During any good eulogy, you can expect that there will be moments of panic, silence, laughter, sadness, or moments when the speaker gets choked up.

Giving a eulogy is almost always accompanied by challenges and surprises.  This is one of those things you can fully prepare for, but have no idea what to expect.  

However, if you can find the strength to take advantage of this great opportunity, I am fully confident you will be glad you were able to tell your story and express yourself with so many other who share in your thoughts, feelings, and loss.  And no matter what happens, no matter what you say, no matter how you feel before or afterwards, you will be loved and appreciated by those in attendance, as well as those listening above.

Christopher P. Hill, Founder

Using Section 1031:  

Tax – Deferred Exchanges For Real Estate

In our recent blogs and articles we have shown how for many families, the new death tax in 2010 will cause families to pay more taxes when someone dies in 2010 that they would have paid in 2009. This is because in 2010, there is no step up in basis for property received from a decedent, except for the $1.3 million and marital exemptions.

Home Occupancy Exemption

In the past, a person could exclude up to $250,000 from the profit on the sale of their principal residence if they lived there two of the last five years from the date of sale. What is new in 2010 is that the heirs of the decedent can use this $250,000 exemption even though they did not live there.

Example: Dr. Sam’s $250,000 exemption. Dr. Sam bought his house in 1981 and paid $100,000. Over the years, Dr. Sam made $100,000 of improvements. If Dr. Sam had sold his house for $950,000, his taxable gain would have been calculated this way: Determine what Dr. Sam paid for the house ($100,000) plus his documented improvements ($100,000), giving him a basis of $200,000. You deduct from his $950,000 sales price his $50,000 of sales expenses (real estate commission, settlement expenses and seller concessions) to determine net sales proceeds of $900,000, giving him a taxable profit of $700,000. You multiply the $700,000 profit times his estimated combined federal capital gain and state taxes of 20% times $700,000, for a total tax of $140,000 ($700,000 times.20 equals $140,000).

However, since Dr. Sam lived there two of the last five years, Dr. Sam gets a $250,000 exemption from this tax on the sale of his principal residence so that his taxable gain is $450,000 for a combined estimated tax of $90,000, giving him a tax savings of $50,000.

Example: Sally Inherits the $250,000. If Dr. Sam had died in 2009, his house would have received a “step-up” in basis to $950,000, the value at the date of his death in 2009 and his daughter Sally could have sold his residence for $950,000 and paid no federal or state capital gain (assuming state law is the same as federal law). But, with step up in basis gone in 2010, Sally receives the property at its basis of $200,000 and would have to pay the full $140,000 of taxes if she sold it, unless she uses part of the $1,300,000 exemption.

However, there is a special exemption in the new 2010 law that allows Sally to use Sam’s $250,000 exemption even though Sally never lived in the property. If Sally does live there for a while, Sally’s time of residence gets tacked on to Dr. Sam’s time of residence.

Section 1031 – Tax Deferred Exchange Beats Death Tax

In addition, real estate has another tax break that is not available for stocks and bonds and has only a narrow application for gold. Under Section 1031 of the US tax code, owners of real estate can complete a qualified tax deferred exchange (trade) of their old rental or business real estate for a new (to them) piece or pieces of rental or business real estate and defer indefinitely any gains.

The reason 1031 provides for a deferral of gain is that when doing a 100% exchange, the seller of the property never has the right to receive any cash and therefore has not taken any money out of the investment and has only continued her investment in real estate. However, when the investor cashes out, then the investor has to pay the deferred gain from all of the predecessor properties which were exchanges.

Example: Dr. Sam’s Rental Property. Dr. Sam had bought a modest home in 1972 on Main Street for $40,000. When he bought his new residence, he didn’t sell his Main Street home, but kept it over the years as a rental property. Dr. Sam deducted his depreciation on the Main Street rental property so that his basis was reduced to $10,000 when he died in 2010. With the Main Street property now being worth $500,000, Sally could pay nearly $100,000 in taxes if she sold Main Street after inheriting it from Dr. Sam with a basis of $10,000 ($490,000 times.20 equals $98,000 of taxes).

Since Main Street is rental property, there is no $250,000 exemption for it, but it is eligible for a 1031 exchange. Sally believes that she could make more money by exchanging Main Street for other real estate. She completes a qualified tax deferred exchange of Main Street and defers all of the gain on Main Street, thereby having almost $100,000 more available to provide her income from the new properties. Under 1031, Sally can continue to do this for the rest of her life and pass these properties on to her children. She could eventually exchange into a very nice house which she later uses (after a period of rental use) as her home. She could exchange into properties where she has virtually no management headaches and a solid income guaranteed by a large national corporation.

Post Mortem Planning

As you can see, there are lots of ways heirs can reduce the impact of the new Death Tax. Since federal capital gain rates are very likely going up, you have to investigate whether a tax deferred exchange makes sense. If you are an heir of property in 2010, make certain that you consult well informed tax, legal, accounting and financial planning professionals to avoid costly mistakes.

Need Advice or Help at No Cost? 

If you would like to discuss any these details (or other estate planning matters) at no cost, contact our Preferred Provider for Funeral Estate Planning suppport.  Roger McClure, at (571) 633-0330 or visit  http://www.wealthcounsellors.com.  Roger can help you go over whether your plan is up to date, uses all of the new exemptions and how you can take advantage of current rules.  Here is some information about Roger:

Roger McClure is a practicing attorney with over thirty years experience. He maintains a business, estate and charitable planning law practice based in Virginia.  His undergraduate degree is in international Studies and he holds a Masters Degree in Political Science from Northwestern University and a Juris Doctorate with honors from the Ohio State University Law School.

McClure has conducted civil and criminal trials in local courts, represented creditors in bankruptcy proceedings, and litigated antitrust and trade regulation cases involving the largest corporations in America in federal regulatory proceedings. He served ten years in the Virginia legislature (House of Delegates), has been a radio talk show host, received a bronze star for service in Vietnam, and has written and published several books and numerous articles.

He is a sought after speaker nationally. Through the National Network of Estate Planning Attorneys and the Wealth Institute of Washington, McClure works with professionals in every state to assist their clients in solving problems and enhancing planning.

Christopher P. Hill, Founder of http://www.funeralresources.com http://www.funeralresources.com/funeral-planning/funeral-estate-planning/ http://www.funeralresources.com/funeral-center/financial-tax-and-estate-planning/

Both Funeral Directors and Families Benefit From New Funeral Technologies

The following is a true story;

“Not too long ago, a friend of mine approached me whose aunt had just recently passed away. He was unable to travel to the funeral service due to a serious prior work commitment, but was comforted to hear that the technology existed to broadcast the funeral service LIVE on the internet. At his request, we contacted the funeral home that was caring for his aunt and informed them of the family’s desire to broadcast their memorial service LIVE on the Internet. Unfortunately, this particular Funeral Home was not willing to expand their services for his family’s request and take advantage of today’s new technologies. I regret to say that my friend was unable to participate in his aunt’s life celebration, and his family was extremely upset when they heard about the incident.” Curtis Funk, President, FuneralRecording.com.

The moral of the story…

If you really think about this story, not only can I can assure you that this person’s family will be taking their future business elsewhere, but I can also assure you that there are many other people who will be hearing about this story.

Now, maybe this story is an extremely uncommon situation, but what I believe is most important here is the underlying message. Funeral Webcasting, despite all of the recent hype in the funeral industry, is by no means a new technology. In fact, over the last few years it has been quickly gaining traction to the point where most family members are beginning to request it, or at the very least, expect this to be a regular part of a Funeral Director’s recommendations and services. So I cannot emphasize enough how important it that Funeral Directors embrace the many new technologies that are being so widely embraced today.

To further prove this point, in the March 2009 edition of the National Funeral Directors Association (www.nfda.org) Magazine, “Director“, John D. Reed, NFDA’s President, had the following to say; “There is no doubt that with today’s technology, even the smallest Funeral Homes can be more competitive and cost-effective and offer the families they serve a wider range of products and services.”

New technology…or not?

The reality is Funeral Webcasting is just one of today’s many new and innovative technologies that are widely recognized in the funeral industry as common services that help make a difficult situation a little easier. In fact, in a recent article by Fox News regarding their choices for the Top 8 Tech Trends of 2010, their #1 Tech Trend was; “You’ll Attend a Funeral Online“.

I firmly believe there are also several other technologies that can significantly benefit most families. In fact, our surveys indicate that Funeral DVD Video Tributes and a Memorial Websites are also among the most popular technology tools families are searching for today. Therefore, it only makes sense that these should be viewed as standard services that today’s Funeral Directors recommend and provide.

The reality is that these new technologies can also help every Funeral Director in multiple ways, such as help strengthen their relationship their families and communities, keep pace with the competition, increase website traffic, receive more family referrals, increase their credibility, and open up many more opportunities for expansion and growth.

Just as they have done for centuries, most Funeral Directors are quickly adapting to these new innovations.  One of the key ways a Funeral Director can measure success is through knowing the families they serve can make the most out of a difficult situation.  Since these technologies can often add tremendous benefits to their valued public service, most Funeral Directors are being proactive by taking advantage of these new opportunities in the marketplace today versus sitting around and waiting for the families to request them.

Our experience with both families and Funeral Directors is that regardless of the family’s situation, or the size of your city or town, families of all kinds and sizes will warmly embrace and accept these types of services when they are correctly presented to them.

Two things we know for certain…

So in summary, here are some things we know for certain. First, given the advent of the Internet and the constant evolution of new and improved technology, we know that one of the many keys to the future of the funeral industry is keeping pace with today’s constantly changing environment. Second, we know that Funeral Directors will do what they have done for centuries, which is find new ways to adapt the these changes. Our goal at FuneralResources is to help facilitate this process sooner versus later.

You can learn more about these 3 most popular funeral planning technologies by clicking here:  http://www.funeralresources.com/popular.

Christopher P. Hill, Founder

http://www.funeralresources.com

I would like to ask you to please spend some time reading this personal story of mine.  I am FULLY confident that you will find something in this story…some special message…that will make your life better…and end up being worth a few minutes of your time. 

When it comes to financial planning, I will spare you the boring details about the importance of have a plan in place for the unexpected, using things like Umbrealla Policies, Life Insurance, Wills, Trusts, Estate Planning, Disability Insurance, Long-Term Care Insurance. etc.

In the past I might have boasted about how well-versed and experienced I am with creating strategies to protect my clients…and my own family…against the unexpected.  But the truth is, things in my life have changed a lot since I lost my mother on Thanksgiving Day of 2008. 

Looking back…

Since nobody in my family had ever really dealt with losing a “close” family member before, we had no idea what to “expect”.  In fact, we didn’t know and we didn’t plan for this outcome in any way, simply because we never once expected to be in ”that situation”.  We never talked about what would happen “afterwards” because talking about her death was an unspoken, unlikely, and unacceptable outcome that never crossed our minds. 

I can vividly remember feeling so disappointed that I didn’t even know what to do next, or who to turn to.  I also remember realizing that I didn’t know what my mother would have really wanted with regards to the many details of her end-of-life plans and preferences.  Why?  Because I had the courage to ask.  It was simply never the right time.

When she passed, it was all so confusing and awkward that I honestly don’t even feel comfortable talking about it.   But what I can talk about is what happened ”afterwards”.   My next memory is that right about the time when the enormity of the situation was just starting to sink in, we were sitting in a local Funeral Home, surrounded by various types of caskets and urns, reviewing a two-sided legal page (General Price List) which is filled with dozens of funeral planning options…all of which probably add up to well over $200,000.

Now please keep in mind that the last thing in the world any of us wanted to do was think about all of these kinds of options, much less have to make decisions regarding any of the financial aspects. 

Things I bet you never thought about…

Here is a list of some other challenges we faced that, I would bet most of you have never thought about either.  Keep in mind that all of these decisions are usually made by most families, including ours, with little or zero education and guidance:

• How do we determine which Funeral Home, Cemetery, or Funeral Director?
• How do we arrange and notify family members and/or loved ones who live out of town?  Who contacts who?
• Trying to determine exactly what type of memorial service is most appropriate?  Do you celebrate a life?  Do you mourn? 
• Knowing whether there was a preference to be cremated or buried?
• Choosing among many different types of caskets or urns?
• Where should the body or ashes finally rest?
• How would you want your plans and preferences to work with regards to your religion?  Do you know which Church?  Which Priest?
• Who should be invited, and how do you locate all their names and numbers?
• Who will pay for these funeral expenses, and how will this be paid for?
• Who will give a eulogy at the memorial service?  Who will do a reading? 
• What is funeral etiquette with regards to dress, time, date, day, etc.? 
• Will there be a gathering after the memorial service?  If so, who should be invited?
• How do you place an obituary? What should it say?  Who should handle this?
• Do you want to request flowers or donations?
• Choosing among pictures, music, videos, and much, much more…

So Here’s My Take…

They say “everything happens for a reason“.  Well, even though there will never be a valid “reason” to lose a loved one in my mind, I can say that this experience opened my eyes to a lot of things that have previously gone unnoticed.   And as time passes, the one thing in particular that is becoming crystal clear is the fact that in all my years of financial education and training, I have never once heard someone so much as talk about how to help the families we serve by encouraging them to create an end-of-life plan.

Well my friends, it is time for change.  Together with many of the finest Association and Organizations in the Funeral and Financial Planning industries, I am going to be speaking LOUDLY, BOLDLY, AND CLEARLY about this need for change when it comes to building a complete financial plan. 

I am also getting ready to release something I’ve worked very hard to create, which you can see here:

3-Step Guide to Creating a Smart End-Of-Life Plan

In the financial planning industry, it is very rare if financial advisors can ever use that dangerous word “guarantee“.   And if we do, it is manadatory that we accompany any “guarantee” with prospectus containing extensive legal disclaimers and warnings!  

However, when you look at this from a real-life experience like I now can, financial advisors actually have something that we can GUARANTEE EVERY CLIENT…which is that some day we will all die…and regrettably, sometimes we will die MUCH sooner than anyone could have ever imagined or planned. 

Each of us has TWO CHOICES…

1. CONTINUE TO DO NOTHING

Don’t plan for this guaranteed outcome in any way, knowing that you will be leaving your family to suffer through all of these unnecessary emotional decisions and financial pressures…and many others.

2.  PLAN TODAY

Put in the time and effort that your family DESERVES and create a sound and comprehensive End-of-Life Plan.

My mission going forward…

My goals is to take my personal experience and learn from it, and turn it into a positive experience by helping families become more educated, empowered, and most importantly, well-prepared.  I want to make my mother very proud one day as she looks down and sees that her never-ending and selfless love continues to live on forever. 

Like many of the best things in life, End-Of-Life Planning is not fun to talk about or think about, and it’s certainly not easy to plan for either.  But there is an old saying that holds true here, which is;

“The difference between failure and success is largely determined by the amount of time and preparation you put into planning for the future.”

After all, what better gift can you leave your family than showing them that you selflessly made time, you took that extra step, and you sacrificed a small part of your life to:

Prove your love by putting THEIR best interests before yours…or put another way, one of your their last memories will be knowing that your main concern was doing everything possible to make THEIR lives better.    

The one thing I can assure you from my own personal experience, it is this kind of true  and unselfish love that actually makes YOU the real recipient of this great gift! 

I think watching this video should help too…

Click here to view the embedded video.

Christopher P. Hill, Founder

http://www.funeralresources.com

Update Your Estate Plan

Take Advantage of 2010 Changes

New Set of Death Taxes.

For one year, 2010, there is a new death tax. In 2010, there is no estate tax or generation skipping tax that is paid by your estate. Instead, there is the abolition of step up in basis for one year.  For most single widows and widowers with money, this change means that there will be higher taxes imposed on their heirs than was true in 2009 when there was an estate tax (click here for last weeks blog). And, the exemptions for the step up in basis tax require different estate plans than the ones that worked prior to 2010.  Since most estate planners thought this would never happen, our informal survey shows that the estate plans of most people have to be changed and changed immediately to comply with the new law.

The New Death Tax. 

For 2010 only, when someone dies who is a US citizen or resident, the heirs of the decedent take the same “basis” in the property as the person who died or the value at the time of death, whichever is lower. Example: Dr. Sam bought 1000 shares of Google stock when it was $100 and when Dr. Sam died in 2010, Google shares were selling for $600 a share, for a gain of $500,000. If Sally, Dr. Sam’s daughter and heir, sells those 1000 shares she will have to pay the capital gain on those shares, which would be $500,000 times an estimated combined federal and state tax of 20% or about $100,000. If Sally waits to sell the shares in 2011, when the combined federal and state capital gain rate may be 35% or higher, Sally would pay $175,000 or more in taxes on just the Google stock.

First Step: Gather Those Receipts. 

Your first step in 2010 estate planning is to gather in a folder and have someone scan and put in computer storage, everything that proves what you paid for your assets and all improvements you have made on your residence.  For estates over $1.3 million, the executor has to report data to the IRS so that the IRS can check up on the taxes the heirs report when they sell the assets they inherited.

Step Two:  Capture the $1.3 Million Exemption.

For everyone dying in 2010, there is a $1.3 million exemption that your heirs get to add to the tax basis of the property you owned at your death. This means for most Americans, they do not have to worry about this step up in basis problem because they have less than $1.3 million in their estate.  This $1.3 million applies to property in revocable trusts or passed by will or without a will. But, it will not apply to assets you gave away or are in irrevocable trusts you do not own. 

Step Three:  The Big Prize: $3,000,000 Exemption. 

If you are married, your spouse can have $3,000,000 worth of property exempt from the no step up in basis rule. In 2009, five years after his wife died, Dr. Sam went to a high school reunion, saw Daisy, his high school sweetheart for the first time in 40 years, and they married three months later.   Dr. Sam’s estate is worth $5 million, with a basis of $1 million and therefore potentially $4,000,000 is subject to taxes when inherited and sold by Sally.  Dr. Sam updates his estate plan and sets up a trust so that when Dr. Sam passes away, $2.3 million goes to Sally in an asset protected trust and $2.7 million goes to Daisy in a trust that pays Daisy only the income for her lifetime. After Daisy passes away (she is 84), the balance goes to Sally. No estate tax because there is none in 2010. Sally has Dr. Sam’s receipts to show the $1,000,000 in basis and Sally receives the $1.3 step up in basis for the $2.3 million she receives in trust. The $2.7 million in trust for Daisy gets a full step up because it uses the $3,000,000 spousal exemption of Dr. Sam. The executor assigns assets that have no basis or have declined in value to the Daisy trust.  Dr. Sam’s assets can be liquidated into cash after his passing and there is no federal or state income taxes (assuming the state follows the federal rules and no retirement accounts which generate taxes).

What If Dr. Sam Remarries But Does Not Update his Estate Plan?  

Alternatively, Dr. Sam does not know the law has changed or chooses not to update his estate plan. He left everything in his plan to Sally and nothing to Daisy. Sally is only able to find documentation of the basis of Dr. Sam of $500,000. Sally’s basis in the Dr. Sam’s property is $500,000 plus the $1,300,000 exemption for a total of $1,800,000, leaving $3,200,000 of Dr. Sam’s estate subject to capital gains taxes to be paid by Sally of about $640,000 or higher in later years.  

What If Dr. Sam Does Re Do His Plan but they Live Together?

As a third example, if Dr. Sam and Daisy lived together and did not get married, even if Dr. Sam left $2.7 million in trust for Daisy, the trust for Daisy would not qualify for the $3,000,000 exemption because they were not married. Daisy or Sally has a large tax bill when they sell assets.  There has been a national trend of more unmarried households. The 2010 tax rules may result in more marriages; there is now a $3,000,000 penalty for not being married. 

Plan Now.

It is time to redo your plan to make sure it reflects what you want and your plan is current with the current law.  Many estate advisors thought this day would never come and they now say that Congress will change the law retroactively and wipe out the step up in basis problem in 2010. But, Congress has not solved this problem since 2002 and you should not depend on Congress to do your planning for you.

Need Advice or Help at No Cost? 

If you would like to discuss any these details (or other estate planning matters) at no cost, contact our Preferred Provider for Funeral Estate Planning suppport.  Roger McClure, at (571) 633-0330 or visit  http://www.wealthcounsellors.com.  Roger can help you go over whether your plan is up to date, uses all of the new exemptions and how you can take advantage of current rules.  Here is some information about Roger:

Roger McClure is a practicing attorney with over thirty years experience. He maintains a business, estate and charitable planning law practice based in Virginia.  His undergraduate degree is in international Studies and he holds a Masters Degree in Political Science from Northwestern University and a Juris Doctorate with honors from the Ohio State University Law School.

McClure has conducted civil and criminal trials in local courts, represented creditors in bankruptcy proceedings, and litigated antitrust and trade regulation cases involving the largest corporations in America in federal regulatory proceedings. He served ten years in the Virginia legislature (House of Delegates), has been a radio talk show host, received a bronze star for service in Vietnam, and has written and published several books and numerous articles.

He is a sought after speaker nationally. Through the National Network of Estate Planning Attorneys and the Wealth Institute of Washington, McClure works with professionals in every state to assist their clients in solving problems and enhancing planning.

Sometimes I feel as if I am the only person in America who is speaking about one of the most important topic…and yet one that <b>almost nobody is teaching, practicing, or implementing into family planning:

“End-of-Life Planning Should Be a STANDARD Piece of a Comprehensive Financial Plan!!”

If you really think about it, the last thing any of us want to do is talk about…or think about…is planning a funeral. But the unfortunate truth is, some day every single one of us will be forced to deal with this issue, hopefully later versus sooner.

But here is the real kicker…if we know for a FACT, with absolute certainty, that we are all going to die some day, why is it that most people are NOT talking about this? Why are financial planners NO T learning the best ways to do this? And at the very least, documenting our End-Of-Life plans and preferences for our loved ones?

My LIVE Interview with FOX News last week should explain this better:

Click here to view the embedded video.

Please watch this two-minute video about:

Why Everyone Family Should Create a “Love Drawer“ 

Click here to view the embedded video.

Financial Planners Should Encourage End-Of-Life Planning!

Just so everyone reading this knows, in addition to being the Founder of our website, I have worked as financial planner for over 23 years and currently own my own Wealth Management practice.

I mention this only because the sad truth about the financial planning industry is that it largely overlooks and/or ignores End-of-Life Planning as an all-important addition to a financial plan. To prove this point, in all my years of studying, training, attending classes, and getting licenses and certifications, I have never once heard some talked about this subject, nor was I ever educate about.

Think about this. Has your financial planner discussed this with you? Does your financial plan include your plans and preferences, and maybe even a plan where you have pre-arranged your funeral expenses? I bet most of you don’t, and the worst possible time to be having this discussion is AFTER THE FACT!

To share a personal experience, one of my toughtest days was losing my mother to cancer on Thanksgiving Day of 2008. After going through this entire experience, what I found to be true with each of our family members, including myself, was this… just about the time when it starts to “sink in” that your loved one is really gone, and your emotions really begin to elevate, the next step you are faced with is going to visit a Funeral Home and begin planning a funeral. For most families, this is probably the last thing they want to be doing at that time!  

A Small Sample of Some of the Funeral Planning Details and Challenges:

• How do you transport the body, where do you tranport it, and how soon?
• How soon afterwards should the service be?
• How do you determine which Funeral Home, Cemetery, or Funeral Director?
• What if they live out of town?
• Sitting down with a Funeral Director to review all the details and options
• Try to figure out what your loved one “would have wanted”
• Making some incredibly difficult financial decisions
• Trying to figure out what type of memorial service your loved one “would have wanted”
• Did they want to be cremated or buried?
• Choosing among many different types of caskets or urns
• Where did they want their body or ashes to be placed?
• How do you coordinate this with your religion/Church
• Who should be invited, and how do you invite them?
• Arranging travel and accommodation plans for out-of-town guests
• How will this be paid for?
• Who will speak at the memorial services? Which songs and prayers do you use?
• Do you have an gathering afterwards?
• How do you place an obituary? Who does this?
• Do you want flowers or donations?
• Arranging programs, sending “thank you” cards, and much more…

Another HUGE benefit to creating an End-of-Life Plan is the fact that, in addition to saving your family from going through all these emotional challenges and tough decisions, this thoughtful plan could very likely save your family thousands…or even millions…of dollars. The reason why is you have to remember that when someone passed, some of the financial issues that tie directly or indirectly with the funeral planning process are financial matters such as estate taxes, death taxes, capital gains taxes, income taxes, insurance policy proceeds, investments, real estate, bank accounts, and more.

A wise man once said, “The difference between failure and success is largely determined by the amount of time and preparation put into preparing for the future.” When putting together a sound and comprehensive financial plan, nothing could be further from the truth!

Once you have claimed your business’s Twitter handle, have you considered what to do next?  Do you feel lost in Twitosphere?  Before Tweeting consider spending a few hours writing up a marketing plan specifically designed for using Twitter to build your business’s brand awareness.

Here are three steps to get you started on building your business’s brand on Twitter:

Step 1:  

Do some research and review what your competitors Twitter profiles look like.  Of course, you don’t want to copy exactly what they do, but it will give you some insight into what you should include on yours.   Don’t only review their profile, but also review what type of followers they have, who they are following, and what their Tweets reveal.

Step 2:  

Once you get an idea for how you want your profile to look, fill out your user profile to the best of your ability.  No one will want to follow you on Twitter if this isn’t filled out.  That includes having an avatar, whether it is a picture or a logo of your company.  Make sure your bio is the best it can be because your bio will be the deciding factor on whether a follower will follow you or not.  Use key phrases that the Search Engines could possible pick up in a search.  For example, a business consultant would want to use business consultant somewhere within their bio.  Make sure to include what you do and where you do it at.  In other words, include your exact physical location. 

Most importantly, make sure to include a link to your website or blog.  People actually do click on these URLs and you don’t want to miss the opportunity to build your subscriber list or gain a client because you didn’t have your URL listed in your Twitter bio.

Step 3:  

Many companies are going to the extent of actually having a customized business branded Twitter background designed specifically to represent their brand image.  Focus on what you want your Twitter background to represent.  I would recommend that your background colors and design match what your website has.  Have the designer add in additional information such as your Social Network profile URLs, your company’s tagline, additional contact information on how a potential client can reach you, and your blog and website’s address.  This is an excellent way to drive traffic back to both your blog and website.

Congratulations on taking your company to the next level using Twitter to build your brand.  There is so much to learn about Twitter and what it can do for your business.  Don’t feel overwhelmed, remember, baby steps will get you there!

This article was provided by Christy Taylor, Owner, Virtual Business Connections

Four Ways to Increase Website Traffic Through Facebook

Making use of Facebook Social Advertisements.

Being one of the most popular social networking sites, Facebook will surely enable you to increase traffic to your websites or blogs. Facebook has millions of visitors each day, making it an excellent means for everyone to endorse their products, build brands and increase their websites’ overall traffic.

These social ads are similar to those ads that can be seen in various search engines. You may choose to have a pay per view or pay per click model. Through Facebook social ads, you will be able to reach specific audience on the basis of geographic areas. You will surely have a better return on investment from your advertising campaign by posting ads based on the interests of those people who are part of your network.

To get more website traffic, it is advisable for you to carry out the following:

1.  Provide links on Facebook profile page.

Make sure to provide links to your blogs or websites on your profile page. Through that way, people will be able to check your site and what products or services you are promoting.

2.  Join or create a social group for your business.

This is a better viral marketing tactic that would not require you to capitalize on it. With your created or joined groups, you can post updates about your business, links to your websites and invite people in any types of events.

3.  Make use of Facebook applications

There are lots of applications or widgets that you can add to your Facebook profile. If you don’t know how to add a widget or application to your Facebook profile, you can ask someone to do that for you.

4.  Get a Facebook fan page

A fan page can increase your business’s online visibility and builds brand awareness!

All of these tactics are excellent ways to make the most of using Facebook as another tool for your eMarketing campaign.

This article was provided by Christy Taylor, Owner, Virtual Business Connections

Which is Best?  Can You Use Both?

Courtesy of Curtis Funk, President, FuneralRecording.com

As Funeral Homes and families can now “attend a funeral” and watch a loved one’s Memorial Service on the Internet, the number of families who are searching for…and choosing…this Internet webcast option are growing rapidly.   

Differences Between LIVE Versus On-Demand

LIVE funeral webcasting connects families all over the world at the time of the funeral service and is the next-best thing to being there. It brings comfort to the family members who are unable to attend the funeral in person.

On-Demand funeral webcasting is viewed after the funeral service, and usually the actual video footage is made available within hours after the funeral services has ended.  Therefore, since they are already in a form of a “stored version”, they can be watched at any later date and as many times as the family member or loved one would like.

Most Funeral Homes Are Choosing On-Demand Webcasts

It is important to point out that, whether a family chooses a  Live or On-Demand webcast, both are available On-Demand for up to 90 days.  However, what we have found in the large majority of our experience in working with Funeral Homes is they are choosing to only broadcast this video footage of the service using On-Demand. 

The main reason why mostFuneral Directors are choosing On-Demand versus LIVE Webcasts is because it is just plain easier and more efficient for everyone involved.   When faced with this educated decision, just about every Funeral Director woud not prefer to deal with things like setting up a computer, ensuring connection to the Internet, making sure the camera is working properly, ensuring the camera is pointed optimally for viewing, worrying about the need for Wi-Fi or an air card in remote locations, power outages, dealing with family member who cannot get determine how to get this to play.  So if you really think abou it, by choosing to use On-Demand, the only requirements are setting up the camera, pushing the “record” button, walking away, and coming back to end this after the service.

So it should be easy to understand based on what was mentioned above, given all of the LIVE broadcast possible challenges, the extensive work involved, as well as the increased probability that there can be many complications, we are seeing many more Funeral Directors choose On-Demand webcasts versus LIVE. 

Focus on Offering This Service – NOT the Type of Service

Although we simply wanted to point out the fact that we do see a growing trend here, the key thing to note here is that some of our Funeral Homes are more than willing to utilize this LIVE technology service anyway.  We also currently have many funeral homes working with us today who absolutely love to broadcast their services LIVE, and have been providing us with some wonderful feedback from their families and their practice. 

Whether a Fueral Director chooses either LIVE and On-Demand funeral webcasting, what we have concluded over the years is that each Funeral Home and family is usually unique, and each have a different set of needs.  Therefore, our job is not just to aggressively promote the service, but rather promoting and facilitating the “right” kind of webcast technology for each individual situation.

Whether you choose LIVE or On-Demand Funeral Webcasting (or both) is purely a personal choice, and I stongly encourage each Funeral Director to look review all of the advantages and disadvantages with a webcasting professional before making any decisions.  

Last, but certainly not least, it is my strong opinion that if there are still any Funeral Directors today who have not yet embraced this popular funeral planning tool as a part of their practice, it is my strong belief that they will soon be saying something like: “I cannot afford NOT offering this helpful technology as a routine service that every family can take advantage of”.  The good news is, most families to.      

FuneralRecording.com works with funeral homes all over the United States providing superior funeral webcasting solutions, which are specifically tailored to the uniqueness of each Funeral Home’ and their families.  You can contact them directly with any questions or comments at info@funeralrecording.com or (801) 621-1492

Beware of TV Commentators

A TV financial commentator made the morbid comment this weekend that 2010 is the year to die because there is no federal estate tax in 2010. What he ignored is that the arcane tax law provides that for many with money in 2010, they will actually pay more taxes with the repeal of the estate tax if they die in 2010. So, if you are single or in a second marriage, have between $1.3 and $3.5 million, don’t use dying in 2010 as a tax planning strategy.

Temporary Repeal

Under current law, effective January 1, 2010, the federal estate tax is repealed until January 1, 2011, when the federal estate tax returns with a vengeance with a tax on everything above $1,000,000 and up to a 55% rate. There is legislation pending which would bring back the estate tax in 2010 with an exclusion of $3.5 million for 2010 and the next several years. Congress will probably try to reinstate the estate tax retroactively to January 1, 2010, making the pull the plug strategy for 2010 even a worse idea.  More on that in a future blog.  The federal estate tax is a tax on the estate of everything above the exclusion amount, except that bequests to your spouse and to qualified charities are federal estate tax free.  Also, many states still have an estate tax and some have an inheritance tax.

Step Up in Basis Is a Big Deal

Before 2010, if someone died, their heirs received their property at the market value of the property as of the date of death of the decedent, or an alternate date. In tax talk, this means their “basis” in the property increased and was “stepped up” to current market value.

Dr. Sam Dies BEFORE 2010: No Death Taxes

Dr. Sam (a widower) bought a house in the suburbs for $100,000 which is now worth $900,000. The basis of Dr. Sam in his house is $100,000 (what he paid of it in 1981), plus another $100,000 in improvements, for a total basis of $200,000. If Dr. Sam sold his house for $900,000 and assuming it is eligible for the $250,000 homeowner exemption from capital gain taxes, his taxable gain is $900,000 less his basis of $200,000 less homeowner exemption of $250,000 or $450,000 in total ($900,000-$200,000-$250,000 =$450,000). Dr. Sam’s capital gain tax is a combined federal and state rate of about twenty percent (20%) times $450,000 or $90,000. If Dr. Sam had died in 2009, his daughter and sole heir Sally Sue would have received an increase in Sally Sue’s basis to $900,000, the market value of the house as appraised in the estate of Dr. Sam. Therefore, Sally Sue sells the house for $900,000 after expenses and because her basis was “stepped up” to the value in Dr. Sam’s estate, Sally Sue pays no capital gains because Sally’s stepped up basis is the same as what she sold it for. If Dr. Sam’s estate was less than $3.5 million, his estate pays no estate taxes.

Dr. Sam Dies DURING 2010: $160,000 in Capital Gains Taxes

As a way of raising tax money to replace the revenue “lost” from the repeal of estate taxes, Congress also repealed step up in basis for property received from a decedent.  So, if Dr. Sam died in 2010, when there is no step up in basis, Sally Sue receives the basis for Dr. Sam’s house of $100,000, assuming Sally Sue found proof of the $100,000.  Sally Sue is very unlikely to find the receipts of Dr. Sam to prove that Dr. Sam made $100,000 of improvements. Sally Sue has not lived in the house and the five year period to qualify for the homeowner residence deduction of $250,000 has expired. Sally Sue’s capital gain in 2010 is $900,000 less $100,000 which is $800,000 ($900,000-$100,000=$800,000). With an estimated 20% combined federal and state rate, Sally Sue pays $160,000 in taxes on the sale of Dr. Sam’s house in 2010 if the house is not covered by the $1.3 million exemption.  Sally Sue may experience a $160,000 tax increase due to the one year repeal of the estate tax.

Paper Chase Harassment

Sally Sue has the paper chase harassment of trying to find proof of what Dr. Sam paid for his house in 1981, what he paid for his Microsoft stock in 1982 and what grandmother paid for the family cabin in 1932 before she gave it to Dr. Sam. Finding proof of the basis in assets of a decedent will be very difficult. Sally Sue will have to document her claims of her basis to the IRS. The title companies, the stock brokerage companies, and most of the public will go crazy trying to figure out what parents, aunts, and uncles paid for things during their lifetime. But the anal record keeper gets to finally say with glee: “See, I told you never to throw out those papers from the thirties”.  

Exceptions & Exemptions

Of course, it would not be the American tax law unless there were exemptions and exclusions. There is a $1.3 million allowance for a step up in basis and an additional $3,000,000 spousal exemption. For people who are not US citizens or US residents with investments in the US, the exclusion is only $60,000. The net effect of this is that if you are single or married with an estate plan that does not capture the spousal exemption, you still have a death tax in the form of future capital gains for your heirs and your exemption is no longer $3.5 million as it was in 2009, but only $1.3 million plus proof of your basis in assets not covered by the $1.3 million. Since many people are widowed when older and most don’t have estates greater than $3.5 million, 2010 is the year when the taxes to be paid by their heirs on their inheritance increased up to $440,000.

Utilize Our Preferred Provider – UPDATE YOUR ESTATE PLAN TODAY!

Will your estate plan survive 2010?  In the estate plans we have been doing in the last several years, the 2010 temporary repeal is covered. But, many other plans do not cover this. There are new planning opportunities to take advantage of this one year repeal of the estate tax. 

If you would like to discuss any these details (or other estate planning matters) at no cost, contact our Preferred Provider for Funeral Estate Planning suppport.  Roger McClure, at (571) 633-0330 or visit  http://www.wealthcounsellors.com.  Roger can help you go over whether your plan is up to date, uses all of the new exemptions and how you can take advantage of current rules.  Here is some information about Roger:

Roger McClure is a practicing attorney with over thirty years experience. He maintains a business, estate and charitable planning law practice based in Virginia.  His undergraduate degree is in international Studies and he holds a Masters Degree in Political Science from Northwestern University and a Juris Doctorate with honors from the Ohio State University Law School.

McClure has conducted civil and criminal trials in local courts, represented creditors in bankruptcy proceedings, and litigated antitrust and trade regulation cases involving the largest corporations in America in federal regulatory proceedings. He served ten years in the Virginia legislature (House of Delegates), has been a radio talk show host, received a bronze star for service in Vietnam, and has written and published several books and numerous articles.

He is a sought after speaker nationally. Through the National Network of Estate Planning Attorneys and the Wealth Institute of Washington, McClure works with professionals in every state to assist their clients in solving problems and enhancing planning.