​As part of my estate planning services I encourage people to consider prearrangement for their funeral services.  This is a gift to your loved ones in the truest sense of the work. Knowing your wishes for your final resting place removes a burden and allows your loved ones to remember you without wondering what exactly your wishes may have been.
 
4 Reasons to Preplan:

• You can take more time to decide what you want
• You get to make the choice on how you want to be remembered
• It takes the burden off your family and friends
• It gives you the choice of pre-paying

Many times people don’t want to think about their funeral services, so they put this important part of preplanning off, thinking they will get to it next month or next year. This leaves your loved ones at risk of having to make these decisions when they are grieving.
 
Can you answer these questions?

• Do you know where to start when it comes to making arrangements for your last wishes and what your preferences?
• Do you know what is necessary and what isn’t when it comes to final arrangements? 
• Did you know that most funeral homes are owned by large, for profit corporations? 
• Do you have the important documents organized and accessible that your loved ones will need if you become incapacitated or die unexpectedly?

 
If you want to know the answers to these questions and how to get started
We have a helpful and free helpful E-Planning Guide

This guide is from a local business, Cochrane and Wagemann Funeral Directors 
The guide will walk you through the Preplanning Process and includes helpful checklists along with forms for vital information.  
 
Consider a family owned community focused funeral establishment an individualized and meaningful tribute to you and your loved ones.

For more information on Estate Planning and Trusts, contact The Law Offices of Colleen J. Watters
​

There comes a time in our lives when we must think of family who will survive us and for many of us, that includes our pets and our animals. Many of us are horse owners, and although horses are not known to be 'pets', they are beloved family members none the less. As responsible horse owners, we know they trust us to provide for their complete care. From shoes and proper feed to exercise, vet visits and even euthanasia, our horses are no different than our other family animals. Those of us who cherish our animals as members of the family will do what it takes to make sure they are loved and cared for their entire lives.
 
The care of a horse includes specific needs which must be addressed properly to assure uninterrupted and continued good health and happiness. I recommend working with an estate planning attorney who is familiar with the animal's needs, especially those circumstances that come with horse ownership. I am honored to be one of those attorneys. Through my wide experience in this area, I am able to offer guidance and suggestions for the unique situations that come with being the guardian of all types of animals. I am honored to assist people in assuring the needs of their horse(s), and all other animals that depend on their care, are properly provided for in a comprehensive estate plan (Revocable Trust, Will, Durable Power of Attorney).
 
Providing for your pets doesn’t necessarily require a separate Pet Trust, but you do have to state your wishes specifically. If you wish to learn more about ensuring lifetime care of all your pets, including your precious horse(s), please contact my office. I look forward to serving you and your pets.

I have asked this question of my business owner clients and they often do not have an answer.  Although they have formed a corporation, the business incorporation documents to do not include language to cover these circumstances. 
 
If you are a sole business owner your business may be a risk if you should you become incapacitated.  You must have someone named as your agent to speak on your behalf if you are unable to speak for yourself. Believe me when I say, “This can happen.”  Last year I had to petition the court for a temporary conservatorship for a man that owned his business who had an unfortunate incident during a simple surgical procedure and spent months rehabilitating and unable to work. This meant his business needed to be sold immediately before the value started to drop.  His wife was not a co- owner of the business, there were no powers of attorney in place, and therefore a conservatorship was the only option for her to have authority to sell the business.

The cost of a conservatorship can run over $5,000.00, and can be avoided by having a good estate plan in place that is supported by language in your corporate documents.
 
If your business has one or more co-owners, you might must consider establishing an agreement that, upon any trigger event, especially the death of any owner, their interest is automatically purchased by the business or other owner(s). Known as a buy-sell agreement, this arrangement can ensure that beneficiaries of the departing or deceased owner (including spouses or other family members) don't unintentionally become owners. In the case of death, Llife insurance can be purchased or an irrevocable life insurance trust (ILIT) can be established to cover these buy-sell agreements and provide necessary liquidity.  For other triggers, such as an owner going through a divorce and needing to pay a spouse, an owner “divorcing” the business, or disability of an owner, the business should have a plan to fund in place.  In all cases, the buy-sell agreement should include a fair methodology for determining the value of the business at the trigger, as well as, every 2-3 years.  This enables the owner(s) to ensure that they have sufficient life insurance and to rest assured that they and their families will receive a fair value for their share of the business when, not if, a trigger event occurs.  Remember, all business partnerships end in death or “divorce.”

For more information and assistance with this step I recommend Jim Leonhard, CVA.  Jim is a business advisor with Exit Strategies Group. Email: jhleonhard@exitstrategiesgroup.com; Phone: 916-800-2716
 
At a minimum, a business succession plan should address the systematic transfer of the management and ownership of a business.

Management succession planning may include:

• Development, training, and support of successors.
• Delegation of responsibility and authority to successors.
• Outside directors/advisors to bring objectivity to the process (when necessary).
• Maximizing retention of key employees through equitable compensation planning for management, family/non-family employees, and active/inactive shareholders.

Ownership transfer planning considerations may include:

• Coordination between who will own the business and who will manage the business.
• Consideration of the best interests of the business and the owner's family.
• Timing of a transfer of the business during your lifetime. This may provide you with the opportunity to consult with the successor(s), and generally reduces the risk of a discounted sale of the business.

Once you have established your estate plan, make sure it stays sound by revisiting it at regular intervals or at key life events.

Many people review their estate plan at a regular frequency, often when they review their whole financial plan. This can be done annually, semi-annually, or quarterly; for estate planning specifically, the general recommendation is at least every three to five years or when there is a life event. You may want to get your attorney or tax advisor's help.

And, it's important to understand that the value of your business may continue to grow between the time you plan your estate and when you pass away, and that the taxable estate will include the value as of your date of death.
 
In addition to regular reviews, it’s a good idea to review and update your plan at life events like the following:

• The birth or adoption of a new child or grandchild
• When a child or grandchild becomes an adult
• When a child or grandchild needs educational funding
• Death or change in circumstances of the guardian named in your will for minor children
• Changes in your number of dependents, such as the addition of caring for an adult
• Change in your or your spouse's financial or other goals
• Marriage or divorce
• Illness or disability of your spouse
• Change in your life or long-term care insurance coverage
• Purchasing a home or other large asset
• Borrowing a large amount of money or taking on liability for any other reason
• Large increases or decreases in the value of assets, such as investments & businesses
• If you or your spouse receives a large inheritance or gift
• Changes in federal or state laws covering taxes and investments
• If any family member passes away, becomes ill, or becomes disabled
• Death or change in circumstance of your executor or trustee
• Career changes, such as a new job, promotion, or if you start or close a business

Reviewing your estate and business plan at regular intervals in addition to major life events will help ensure that your legacy, both financial and otherwise, is passed on in accordance with your wishes and that your beneficiaries receive their benefits as smoothly as possible.

916-225-3570   cj@cjwatterslaw.com    http://www.cjwatterslaw.com
​

The financial health of Non-profit organizations requires multi-pronged sources for funding  their mission. Gifts received through planned giving efforts are usually unexpected windfalls to the organization because the donor often has not revealed their gift prior to their death.
 
BOARD PARTICIPATION AND AWARENESS
A Board of Directors that understands the value of planned giving where each member has committed a portion of their estate to the organization is a great start to building a planned giving program. Board members should share their planned giving knowledge throughout their community in an effort to expand the organizations planned giving program. A strong planned giving program that sends a positive message starts with 100% participation by the board.
 
EDUCATING STAFF MEMBERS
Staff can be strong advocates for the organizations mission. It is important that all staff members are comfortable sharing information about all programs supported by the organization including the planned giving program. Staff should also be encouraged to participate in the planned giving program. Even a small gift makes a difference. The important thing to remember is their participation no matter how small the gift.
 
EDUCATING DONORS
Reaching out to your donor base to engage them in conversation is the first step to building a planned giving program. Consider your donor base, their interests, age group, geographical locations, etc. and create outreach, such as a seminar, that speaks to them personally. People are often reluctant to attend a seminar on planned giving for various reasons. The presentation title needs to grab their attention and make them want to attend.
 
EDUCATING LOCAL PROFESSIONALS
Reaching out to local professionals such as CPAs, Financial Advisors, and Attorneys is another great way to spread the word about your organization and your planned giving program. Educating the professionals about your organization’s mission and values gives them the information needed to share your work with their clients.
 
Colleen is an experienced presenter and speaker who enjoys speaking to community groups, charities, and local residents in Sacramento and Placer Counties.
 
916-225-3570   cj@cjwatterslaw.com    http://www.cjwatterslaw.com

A divorce affects a person’s estate planning documents and beneficiary designations.  

• When should you revise your Durable Power of Attorney and Advanced Healthcare Directive?
• Are you prepared and do you have a plan in place to assure assets received in a divorce proceeding are protected after the divorce is final?  

Before the divorce process has started:

• Powers of Attorney should be revised to remove the spouse.
• Beneficiary designations on separate property that is not involved in the divorce settlement should be revised to name the intended beneficiaries. (Life insurance, investment accounts, annuities, etc.) Review Calif. Family Law code §2040 for restrictions.

After the divorce is final:

• Establish a new Trust and/or Will
• Retitle assets (Real property, vehicles, timeshares, investments, etc.)
• Revise all beneficiary designations for assets received as part of the divorce settlement.

The process for creating an estate plan depends on the complexity of family and assets. A basic trust package includes: Revocable Trust, Certification of Trust, General Assignment, Will (with guardianship language if there are children under the age of 18), Durable Power of Attorney, Advanced Healthcare Directive, Trust Transfer deed.

The process can be completed within less than 3 weeks with two meetings with one conference call in between. Contact me if you would like to learn more about estate planning.

916-225-3570   cj@cjwatterslaw.com    http://www.cjwatterslaw.com

I was recently contacted by a non-profit regarding a handwritten will that named the organization as a beneficiary of the decedent's estate.  The will is being contested by family members and is now part of litigation that could become very costly.

I have seen this issue on more than one occasion. A persons intent to leave a charitable bequest is thwarted by poor planning, ambiguous documents and family members that feel they are not receiving their fair share of the estate. 

How can you assure your estate is distributed as you intended?

• Engage the assistance of an experienced Estate Planning attorney to prepare your Trust &/or Will.  
• Be specific regarding the non-profits you name as beneficiaries.  Include the name, tax ID, address and phone number for each charity. 
• Have your documents notarized, and do not rely on handwritten documents to fulfill your charitable intent.

These steps will help assure your gifts to charity are realized and not held up by costly litigation that accumulates legal fees which diminish the value of the gift. 

916-225-3570   cj@cjwatterslaw.com    http://www.cjwatterslaw.com

As an Estate Planning Lawyer I am in contact with people who have lost a loved one and I encourage my clients to plan ahead as much as possible. 

One of the greatest gifts my mother gave us was to plan ahead for her end-of-life arrangements.  When I meet with people regarding their estate plan I recommend they consider pre-planning their end-of –life arrangements as well.  


The information below is from the Heritage Oaks Memorial Chapel.  For more information visit their website at HeritageOakseMemorialChapel.com

5 Steps Concerning Your End-of-Life Planning

Do realize that when you make decisions in advance regarding your end-of-life arrangements, you are telling your family that you care about them.  Making arrangements for a loved one after they have passed away is stressful!  You can remove this stress for them by taking care of your arrangements in advance. You will also have peace of mind knowing that everything is in order and you have your wishes in writing.

Here are some steps that will guide you in this process:

·        Decide What You Want.  What do you to have happen once you pass away?  Many people are concerned about the cost.  If money was not an issue, what would you like to see happen? Many people who come to Heritage Oaks are surprised at how little it will cost to do what they want. We can assist you with putting a plan into place so the money will be set aside in advance to cover the cost of your wishes.

 

·         Keep in mind that services are for the living, not the deceased.  The customary visitation, funeral or memorial celebration of life are what many family members need to bring closure after their loved one dies.  Showing you care includes providing them with a formal opportunity to say goodbye and honor you together with your family and friends.  It is normal for people to grieve the loss of a loved one, and this is an important first step in that grieving process.

 

·         Decide where your final resting place will be. Local communities in Sacramento and Placer Counties have municipal cemeteries that provide a lower rate on burial plots and niches to their residents.  These cemeteries are very well maintained and the cost is 40% to 60% less than commercial cemeteries.  Plus, if you are a veteran of the U.S. Armed Forces with an honorable discharge, you’ll appreciate knowing that you are entitled to a free burial plot or cremation niche at Sacramento Valley National Cemetery in Dixon, CA. We will assist your family with making the arrangements at the National Cemetery at no charge to them.

 

·        Don’t procrastinate!  Putting things off does not bring peace of mind. Once this is done, you can relax!  A few minutes now will save your loved ones a lot of unnecessary pain.

 

·        Write down your plan. 

  We can help you get started by providing you with a complimentary Personal Memorial Planner that will guide you through organizing the important information your family will need.  We will also provide Estate Planning Tools including an Advanced Directive.

 We encourage you to request our free “Personal Memorial Planner” which will not only help answer your questions, but also guide through the planning process. Please just call us to request your planner, if you have any other questions, or if you would like to set an appointment.

Call 916-791-CARE (2273) or 800-316-1987 or email,

RonHarder@HeritageOaksMC.com JimBeeding@HeritageOaksMC.com Call, or visit, Heritage Oaks Memorial Chapel, a veteran, family-owned and operated, full service funeral home & beautiful chapel serving the areas of Rocklin, Roseville, Citrus Heights, Antelope, Fair Oaks, Carmichael, Folsom, Sacramento, Elk Grove, West Sacramento, Davis, Granite Bay, Loomis, Auburn, and Lincoln.

916-225-3570   cj@cjwatterslaw.com    http://www.cjwatterslaw.com

Saving for education of your grandchildren now, or are you planning to help your children, grandchildren or another child close to you with their education expenses?  There are many options to help you achieve this goal.

• Custodial Accounts (UTMA)
  
• 529 college savings plans
  
• Coverdell Education Savings Account (CESA)
  
• Traditional/ROTH IRAs
  
• Personal Investment
  
• Zero  Coupon Bonds
  
• Savings Bonds – Series EE & I
  

Each of these has differing uses, benefits, and drawbacks.

• Who can contribute?
  
• Contribution limit?
  
• Who has control?
  
• Qualified distributions?
  
• Income Tax considerations
  
• What happens to the unused balances?
  
• Financial Aid considerations
  
• Gift and Estate tax benefits
  
• Contributions may be irrevocable gifts
  
• Bonds may not receive the tax-free benefit for education expenses if issued incorrectly
  

The list goes on.  Are you confused yet?   When a client asks me about a complicated financial decision such as this, I always recommend they seek advice from a Certified Financial Planner.  Planning of this type requires a complex review of your assets and your intent to assure the plan you put in place will fulfill that intent and is a sound financial decision.

I work with Certified Financial Planners regularly and can provide referrals upon request.  Please contact me for more information and to discuss how your estate planning documents may be affected by this type of education planning.

Colleen J. Watters
Estate Planning Attorney
916-225-3570
cj@cjwatterslaw.com

www.cjwatterslaw.com

Pets are a joy to have, but did you know that they also help reduce stress, lower blood pressure, and can even help us live longer?

Recent studies show that pets have a significant and positive effect on humans.

In short, researchers found that:

• Petting and talking to an animal lowers blood pressure and stress levels
  
• Aquarium viewing is a proven stress buster
  
• Pet owners make fewer visits to the doctor
  
• Pets increase the survival rate of people with heart problems
  
• Pets Help Lower Blood Pressure
  

A recent study by Dr. Karen Allen at the State University of New York at Buffalo found that people with hypertension who adopted a cat or dog had lower blood pressure readings in stressful situations than did those who did not own a pet.

Pets Help Reduce Stress
Walking with a pet helps soothe nerves and offers instant relaxation. Studies conducted worldwide have shown that the impact of a stressful situation is lesser on pet owners, especially males, than on those who do not own a pet. The studies were done by Josephine M. Wills at Waltham Centre for Pet Nutrition in the United Kingdom.

Pets Help Prevent Heart Disease
Because pets provide people with faithful companionship, research shows that companion animals may also provide their owners with greater psychological stability, thus offering a measure of protection from heart disease. This according to a study at the National Institute of Health (NIH) Technology Assessment Workshop: Health Benefits of Pets.

Pets Help Lower Health Care Costs
The NIH Technology Assessment Workshop also found that people with pets actually make fewer visits to the doctor, especially for non-serious medical conditions.

Pets Help Fight Depression
Pets help fight depression and loneliness, promoting an interest in life. When seniors face adversity or trauma, affection from pets takes on great meaning. Their bonding behavior can foster a sense of security, according to Between Pets and People: The Importance of Animal Companionship by Alan Beck and Aaron Katcher.

And, don’t forget to include your pet(s) in your Estate Plan.  Contact me today to discuss how to assure your pet is safe should you become incapacitated or pass away. 

Colleen J. Watters
Estate Planning Attorney
916-225-3570
cj@cjwatterslaw.com
www.CJWwattersLaw.com