Cary Stamp

Cary Stamp & Company Team Members Attend 9th Annual ADFP Conference

cstamp — Wed, 05 Oct 2011 18:56:08 +0000

Cary Stamp & Company team members, Carl Watkins and Cary Stamp, recently attended the Association of Divorce Financial Planners (ADFP) 9th Annual Conference in Rye Brook, New York. The conference was designed to provide continuing education for divorce financial planners to increase their knowledge in advanced financial topics related to divorce.

Several sessions focused on Collaborative Divorce topics and heightened awareness of the benefits and added value of divorce financial planning as an integral part of the divorce process. Topics included strategies for creative thinking to assist with settling cases, tax and estate planning pre and post divorce, and the evolution of professional protocols and standards in the emerging divorce financial planning profession.

The 3 day conference was attended by over 80 divorce financial planning practitioners from over a dozen states, Canada and the UK. Carl Watkins is a Certified Divorce Financial Analyst™ and an Associate Financial Advisor with Cary Stamp & Company. Cary Stamp is a CERTIFIED FINANCIAL PLANNER™ practitioner and a Certified Divorce Financial Analyst™ who specializes in divorce financial planning in Palm Beach County, Florida.

Retirement Assets and Income in Alimony Cases—Are 72(t) Distributions the Answer?

cstamp — Tue, 06 Sep 2011 17:13:38 +0000

By: Cary B. Stamp, CFP®, CDFA™

Recent court rulings in Florida divorce cases have held that when the alimony calculation is made in a divorce case, all “available sources of income,” including potential withdrawals from equitably distributed IRA and retirement (“Qualified”) accounts should be included (Niederman v Niederman 60 So.3D 544) These cases have held that even if the recipient is under age 59 ½ and not normally eligible to make a withdrawal without a penalty they may do so using an exception to the normal rules under IRS rule 72(t). The exception in rule 72(t) allows the holder of an IRA or qualified retirement account to make distributions without penalty provided that those distributions are made as a series of substantially equal periodic payments and continue for the greater of 5 years or until the participant reaches age 59 ½.

IRS instructions on using a 72(t) distribution can be found on the IRS website:

http://www.irs.gov/retirement/article/0,,id=103045,00.html#4-

Fortunately, the court ruling in Niederman V. Niederman only requires the distribution of earnings on retirement accounts and not the invasion of principal. In that case, both financial experts agreed that a 5% withdrawal rate would not require invasion of principal. Ironically, that case was concluded in 2008 and could not have foreseen the significant declines in the equity markets or the low interest rates we experience on deposits today. From the prospective of a financial planner, the ruling makes little sense in calculating income. As a practical matter, almost none of our clients choose to draw income from their retirement plans before age 59 ½ and many clients choose to delay those distributions as late as possible until age 70 ½. The ruling, like most of the laws regarding alimony in Florida, also fails to take into account the effect of inflation on future income needs. While 72(t) distributions may have a waiver of the penalty of these withdrawals, taxes are always due on these distributions at the time they are made (Roth IRA’s are excluded if the rules are followed).

If we have historic inflations rates of close to 3% and investment returns on a conservative portfolio could average 5%, then the “safe” net withdrawal rate of income on these accounts should be closer to 2%. Again, as a practical matter, many divorced women are not in a position to take risk with their portfolios and with current rates on fixed income investments at mutigenerational lows, even using a 5% return calculation is aggressive. The conclusion that I draw from these observations is that using rule 72(t) as a source of calculating income available to a divorcee places a significant burden on the non-working spouse and creates a situation where they may easily outlive their income. Other court rulings have included the finding that alimony payments may not contain a “savings component” even if this was the standard practice during the marriage. I would argue that including an index for inflation in alimony calculations is not a reflection of savings—it is a reflection of reality. Inflation will happen and portfolios will need to be invested to take inflation into account.

Florida Statute 61.082(g) requires the use of “all sources of income available to either party.” There is little question that this issue will continue to be litigated unless there is a change in Florida Statutes that eliminates qualified assets as a “source of income.” While it makes a compelling argument from the spouse who is compelled to pay alimony, it does not make sense as a long-term financial strategy for either party. The courts have also indicated that the ruling cuts both ways and that the payor spouses’ “ability to pay” should also include using 72(t) distributions as a strategy for calculating available income. While it appears that current case law states otherwise, it would be difficult to find many financial professionals who would advise their clients to make pre-59 ½ distributions from their qualified accounts to pay for anything. Rarely is that a prudent financial or tax strategy.

Other Cases relevant to the 4^th District Court of Appeals in Niederman:

Donoff v. Donoff 940 So.2d 1221

Mallard V. Mallard 771 So.2d 1138

Diffenderfer v. Diffenderfer 491 So.2d 265

Castaldi v. Castaldi 968 So.2d 713

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult a tax or legal professional regarding their individual situation. IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code; or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

Insurance After Divorce

cstamp — Fri, 08 Jul 2011 17:31:11 +0000

FAQ: Divorce Florida Style

By Michael H. Gora

Q My husband and I are going through the divorce process, and have been for about six months. We have a mediation coming up. To prepare I sat down with a friend of mine to go through her divorce settlement.

Last night my friend and I were discussing insurance issues. I have been married for over twenty years, and we are both forty-five years old, and in good health. We have two kids, one in college, one a sophomore at Pine Crest. I have not worked during the marriage. My Husband makes good money. We have always had health insurance and life insurance, through his employment with a public company.

Can you tell me what kind of insurance protection I would get if the case went to Court? Would the judge have to give the children and me the same health insurance we have now? Would he give me life insurance to pay for alimony and child support, in the case of my husband’s premature death?

A Let’s discuss the life insurance first. Florida appellate court decisions have made it much harder for a trial court to award life insurance as security for alimony or child support in the last few years. To be sustained on appeal an award of life insurance must meet three criteria:

1. There must be “special circumstances” requiring the insurance. That seems to mean that there has to be some special risk to your husband’s health, or, perhaphs, some special condition that would prohibit you from ever earning your own support, or being able to support your minor child.

2. The trial court must find that the insurance is affordable, after making the distribution of assets, and deducting the cost of the alimony and child support from you husband’s earnings. Non-marital assets of both parties must be considered.

3. The court must make specific findings as to whether all of the proceeds of existing insurance are necessary to secure the support, or the amount of a new policy, and how the insurance is to be distributed; directly and all at once , or through a trustee, in monthly payments.

That being said, it is quite common to be able to negotiate life insurance coverage during mediation, especially if you and your husband already have life insurance. The life insurance to secure alimony would be based upon the amount of alimony that you receive and you life expectancy, or, perhaps the number of years left before your husband is of retirement age, or the number of years left on your term insurance policy already in place.

That insurance requirement would be eliminated if you lost your alimony as the result of a re-marriage, or later modification of alimony. Insurance to secure child support would be calculated based upon the current child support, and incorporate a declining balance to take into consideration your minor child’s age and balance due.

You have also asked about health insurance coverage. The court will, probably require your husband to continue to supply health insurance for your minor child, and, perhaps for your children while they are in college or to the age now provided in the new health care law.

Federal law does not allow you to continue on your husband’s group health plan indefinitely, but creates, through a process referred to as COBRA, the ability to maintain your pr4esent coverage at an expense close to what your husband’s company is paying to cover you. You can choose to go with that plan or purchase your own. The cost of your insurance will be considered as one of your needs to by covered alimony.

Michael H. Gora has been certified by the Board of Specialization of The Florida Bar as a specialist in family and matrimonial law, and is a partner with Shapiro Blasi Wasserman & Gora P.A. in Boca Raton. Mr. Gora may be reached by e-mail at mhgora@sbwlawfirm.com, and at (561)477-7800.

“My Husband’s Daughter is Trying to Break up Our Marriage”

cstamp — Fri, 01 Jul 2011 19:13:33 +0000

by Linda Lipshutz MS, LCSW

I recently received a call from a woman I’ll call Susan. I’ve changed the details, but her story will come through just the same.

“The holidays were absolutely awful! My husband Mike’s two kids came to spend a week with us. His 18-year-old son Dylan can be friendly enough, but pair Dylan up with his sister Jenna and the two of them are impossible. Jenna is 16, but she behaves worse than a two year old.

Christmas Day, the three of them were laughing and joking, and I felt like none of them were paying any attention to me. Jenna has a habit of pushing next to Mike on the couch so there’s no room for me. She has this smug look on her face when I look for a seat. She’ll call her mother and speak loudly in front of me, giggling and saying “I love you, Mom.” When I told Mike how left out I felt, he blew up and said I was always criticizing his children and looking for trouble.

I’ve been married to Mike for about a year and things are usually great, except for Jenna. You would think I’d broken up her parents’ marriage from the way Jenna treats me. Jenna has not forgiven Mike for divorcing Carol and she loves to make him pay, big time! Mike feels guilty and lets Jenna get away with murder.

When we were dating, he loved to tell me how close he and his children were and how much he enjoyed their weekends together. I never had children of my own, and maybe I was naïve, but I had a vision of getting along great with Mike’s children. At the beginning, I would try to do all kinds of special things for his kids. I’d ask a million questions to show interest in their lives and gave them great gifts. Then I overheard Jenna tell her friends that I was trying to buy her.

Whenever Jenna comes to visit, I feel a huge knot in my stomach. No matter how hard I try to get along with her, I can tell she can’t stand me. Mike always takes her side and doesn’t consider my feelings at all. The worst thing is: Mike and I start fighting over little things now. He blames ME for causing all the problems.”

Couples with children often face their upcoming marriages with a mixture of optimism and trepidation, knowing that blending families, no matter what the ages, can be fraught with tension and heartache.

Adults often count on young people to adjust to the profound adult decisions they have had no say in: first their parents’ decision to end the marriage, and next to accept their parents’ new partner, if they decide to remarry. Even if the children have strong feelings of opposition their opinions are often not considered. Adults often expect them to embrace the changes, and then get annoyed when they don’t jump onboard with enthusiasm.

The stepfamily is a new entity, and it must incorporate memories and experiences of the prior family constellations. We can’t overlook the profound adjustment necessary for everyone to overcome the emotional fallout from the breakup of the previous family unit. Children, still reeling from the loss of comfort, familiarity and sense of security they may have felt in the original family, will often magnify the loss when they enter this new unit. We need to further consider that the child may have finally adjusted to the interim phase of separate, single parent households, and is not eager to include the parent’s new love interest into the mix.

After a divorce, grieving parents often reach out to their children in a special and powerful way. There may be special parent-child rituals and activities, and the child might bask in getting the parents’ undivided attention. Guilty parents often inadvertently give their children too much say in planning activities and routines, so that the child develops an elevated sense of importance and control. When this happens, there can be tremendous resistance to a new marriage, because the young person does not want to relinquish this elevated position in the single-parent family nor give the new stepparent any say in decision-making.

Sometimes the new couple is so eager to have things work out that there can be an unrealistic wish that the children will instantaneously trust and warm up to the situation, bonding with their new stepparent (and stepsiblings if there are any.) They don’t always consider that relationships are not developed overnight, and it can take a considerable amount of time to integrate contrasting opinions and value systems. Ironically, the children are often more realistic about the challenges than their parents: they’re not happy about the changes and make it clear that they are not interested in making things work!!

Sometimes the adults are so focused on meeting the children’s needs they don’t pay sufficient care to deepening their own bond and nurturing their separate relationship. The self-esteem of the parents and their sense of security with each other will markedly affect their ability to face the challenges in front of them. It is not uncommon for a parent to feel guilty that developing a bond with the new spouse might be a betrayal to their child.

It is clear that Susan and Mike had the best of intentions when they planned their marriage. They were perhaps unrealistic in expecting that things would fall into place more readily and that there would be immediate caring and appreciation.

It is important to clarify the evolution of the relationships. Mike’s alliance with his children pre-dated his relationship with Susan. The three of them may have shared inside jokes, enjoyed special routines and traditions and had a unique way of doing things that could have been tough for Susan to understand and feel comfortable with. It hurt her to believe that she was not welcome in this private world.

Susan was understandably hurt and disappointed that her stepchildren rebuffed her efforts to bond in a close and loving way. Simultaneously, Jenna was probably struggling to sort out a host of conflicting emotions—jealousy that her father had feelings for this stranger, worry that the closeness with her dad would be compromised, worry that accepting Susan would be disloyal to her mother, resentment that she had to accommodate to Susan’s preferences and that she might be losing her power and stature in the household, and on and on. And, of course, accepting Susan would mean that Jenna would have to relinquish any remaining fantasies that perhaps her parents might reconcile.

Jenna might have been testing Mike’s loyalty, because she was worried that Mike would focus all of his love and attention on Susan (and that he would not be emotionally available to her.) She might have sensed Susan’s insecurity and might have used Susan’s discomfort to her advantage. Consciously, or unconsciously, she might have been trying to put a wedge in her father’s relationship with his wife, hoping this would secure her own position.

Susan and Mike might have been so focused on integrating the family that they were not focused sufficiently on preserving their special bond, at all costs. Each needed to know that the other was committed to understanding each other’s position and would provide support when the going got tough.

Further, Mike must take important steps to reassure Susan that he will send a clear message to his children that he loves and respects Susan and that he counts on them to be positive and respectful to her. He should step aside, encouraging his wife and children to form a relationship of their own. If Susan trusts that she truly has Mike’s unwavering love and support, it will give her the strength to withstand the hurts, and the motivation to persevere. It also sends a message to the children that they do not have the power to sabotage Mike and Susan’s relationship.

If Mike feels that she is trying to undermine his efforts to be close to Jenna, he will become hurt and angry, and the distance between the two will grow. If Susan reassures Mike that she will make every effort to get along with his children because she knows how important this is to him, he is likely to be more understanding of her hurts and disappointments when things don’t go smoothly. It would probably be helpful for her to spell out specific ways he can support her in this direction. (ie. explaining private jokes to include her, or speaking up for Susan when she’s feeling awkward). It would be very helpful if she could find an activity that she and Jenna can share together, perhaps cooking special foods or going for a run.

It will be a challenge for Susan to pay attention to her mood and attitudes. If she becomes defensive and resentful too much of the time, she may be introducing an element of tension and irritability that will exacerbate an already tense environment. If she can avoid having an edge and reacting negatively when things don’t go her way, she can head off misunderstandings and unpleasantness. Removing herself from any power struggles will probably make a difference. Having the maturity and inner strength to overlook sarcasm and slights isn’t easy, but can head off conflict. That’s not to say she should allow herself to be verbally abused. If things are excessive and spiraling negatively, with Mike’s support, she should face things head on, firmly, but calmly.

What many of us don’t realize is that we usually have room in our hearts to love different people, in different ways, simultaneously. It is important to remember that in these situations, the scars are often deep, and that it can take months and years for hurts to soften. If the adults are patient and respond with sensitivity and emotional support, they have taken a critically important step to help the young people process their losses and to be receptive to the changes that are expected of them.

(This article was previously published in the Palm Beach Gardens Issue of Florida Weekly.)

Linda Lipshutz, M.S., LCSW is a psychotherapist serving individuals, couples and families. A Palm Beach Gardens resident, she holds degrees from Cornell and Columbia and trained at the Ackerman Institute for Family Therapy in Manhattan. She can be reached at her Gardens office at 561 630 2827, or online at www.palmbeachfamilytherapy.com.

Cash as a Problem

cstamp — Thu, 30 Jun 2011 14:27:09 +0000

Divorce Florida Style

By Michael H. Gora

Q: For two decades, my husband and I ran a restaurant. We don’t take credit cards. We also do not pay much in income taxes, as our cash registers always run out of tape when we are busy. Instead of having a 401k we have (had) trunks full of the green stuff, and I do not mean spinach, all over the house.

Two weeks ago, I took my sister to New York for ten days. I was going to write off the trip as a business expense. When I got back, I found that my husband had moved out of the house and into the apartment of our twenty-five year old waitress, who he could not have known for more than a month.

He was generous; did not touch the $3,000 in our bank account, but did empty all the cash out of the house. Bales of money. I am a little anal. I kept records. We were saving a couple of hundred thousand a year. He took over three million in cash.

I am going to divorce the turkey, but I don’t know what I can tell the divorce lawyer. Will the lawyer have to turn me in to the IRS? How can I get my half of the cash back? How can I prove what the value was of our restaurant? How can I prove how much we made, for alimony and child support? (We have one girl, a freshman in high school.) The only asset we have other than the restaurant and the cash is a mortgage free house worth which used to be worth about two million.

A: Your lawyer has no obligation to turn you and your husband into the IRS for any of your past conduct, which you disclose during your confidential relationship. On the other hand, telling the attorney of plans to continue defrauding the government technically requires reporting you to authorities. Your attorney should not allow you to knowingly file a false financial affidavit or assist you in preparing such an affidavit.

Any judge who receives information of past criminal conduct will probably report you immediately. If you use the circumstances to threaten your husband into a settlement agreement, the agreement would probably not be upheld in court if attacked based on coercion and duress.

Even mediation becomes a problem for you. Rules concerning mediation provide that the issues discussed are confidential. However, information concerning the commission of a future crime is an exception, which, in theory, the mediator has to report.

Your underground income makes the normal divorce process very difficult to use successfully. Your husband is in a better position, having possession of the cash. The first thing your lawyer has to do is convince the other side that your husband is in a potential trouble as you are.

Suggest to your attorney that both you and your husband should prepare, but not sign or file, financial affidavits, which you each believe are reasonably accurate. Next a four way meeting, with no mediator might be appropriate, with a written confidentiality agreement to be signed by all.

Bring your records of savings and, perhaps, of the history of your spending to help prove assets and income. Take the position that you both need to settle without court interference for you both and your daughter to go forward with no criminal problems. His lawyer will point out that you both signed tax returns.

There might be some value in the restaurant business, but with no accurate books and records, you might not be able to get much for it if it was for sale, unless an experienced operator of similar restaurants can be convinced of its true value.

Negotiate for all of the assets other than the restaurant, not in cash such as your mortgage free house. However, the house could be lost as the result of a future criminal prosecution. You have the kind of case that must be settled, as there is no good alternative that will not be more trouble than it is worth.

Michael H. Gora, has been certified by the Board of Specialization and Education of The Florida Bar as a specialist in matrimonial law and is a partner in Shapiro Blasi Wasserman & Gora P.A. in Boca Raton, Florida. He may be contacted at mhgora@sbwlawfirm.com and (561)477-7800.

Divorce and Charitable Remainder Trusts: Convert a CRT interest to cash now?

cstamp — Thu, 14 Apr 2011 17:55:39 +0000

By Cary B. Stamp CFP®, CDFA™

Charitable remainder trusts (CRTs) are a strategy used to convert an appreciated asset into an income stream with the remaining interest passing to a charity. Donors defer paying tax on the appreciated asset’s sale, plus they get an immediate tax deduction for the amount that will ultimately pass to the charity.

The arrangement is irrevocable. But that doesn’t mean the funds are locked up for life.

For example, a divorcing couple who has a CRT can simply terminate the trust and split up the assets between the income beneficiaries and the charity.

However, there is an alternative to trust termination that could result in more money going to the income beneficiaries …

Clients could sell the income interest of their CRT for a lump sum cash payment. A sale is relatively easy to execute, and buyers are out there. In a Florida divorce case, this means that a CRT could become a cash asset that could be divided between the parties. Instead of having to wait for a stream of payments, the marital estate could have additional liquidity if needed. It is also important information to have when valuing the income interest in marital settlement negotiations.

First you need to determine if there is a market for your client’s CRT. Buyers generally don’t require sellers submit to medical underwriting. But if your client has a terminal illness, it could be difficult to find a buyer.

And you must be sure that the trustee will consent to a sale and all income beneficiaries will agree to sell their interests.

The next step is …

Determining Value

The market value on the income interest for a CRT depends primarily on the expected size and frequency of the payments.

Plus a buyer might consider additional factors, such as:

Current value of trust assets
Payout rate
Number of remaining payments
Expected investment return
Tax rate on future payments
Assets in trust — liquid or illiquid
Age of income beneficiaries

Tax Implications

Income from a CRT is generally taxed as ordinary income, which could be as high as 35%.

However, since this is a sale of a capital asset the proceeds are considered capital gains. That means if the asset has been held for more than a year, it would qualify for long-term capital gains treatment. The maximum federal long-term capital gains tax rate for 2011 is 20%.

Clients would be selling the income interest. The remainder interest is given irrevocably to charity when the trust is created. It is this gift which gives rise to the initial tax deduction. The sale of the lead interest does not change the fact the remainder is still assigned to charity. So clients will not lose the original charitable tax deduction.

To Sum It Up

With a potential greater lump sum than the net present value of their remaining interest and a lower tax rate on the distribution, it makes sense to inform divorcing clients who have CRTs that they might benefit from a sale of their CRT.

In most cases a CRT sale can be completed in a matter of a few weeks from the date at which all the information is made available and a decision to sell has been made. Clients will receive full payment upon closing. If there are complicating factors, the sale can take longer.

The market for these interests is, and probably will remain, a specialized niche. Also, each transaction must be evaluated on its own merits, and an appropriate buyer matched with a seller.

Give me a call to discuss your case. I’ll be glad to review its potential for a sale, help secure a commitment from a buyer and put together a presentation for your client.

Divorcing Couples and the Special Needs Child

cstamp — Tue, 01 Mar 2011 18:24:58 +0000

By: Cary B. Stamp CFP®, CDFA™

Between 40 to 50 percent of marriages end in divorce. Indeed a disturbing figure. However, throw in the stress of raising a child with “special needs” and that number shoots up to 85 to 90 percent! And it is estimated that up to 31 percent of children under age18 have two or more special needs.

Children are often the most affected parties in any divorce. And when there is a child with physical, mental or emotional disabilities, the potential for long-lasting problems increases exponentially.

Therefore, divorcing couples who have special needs children, must take additional factors into consideration including …

Budgeting for the Child’s Care

Support guidelines generally do not include the higher costs the custodial parent may have when raising a child with special needs. Obviously there will be additional medical costs. But there could also be extra expenses, such as:

Therapy
Equipment
Transportation
Modifications to the home
Day care

What’s more, most of these types of expenses are not covered by private insurance or government programs. And the child’s requirements could easy change as he or she ages.

Making Both Parents Aware of the Child’s Special Needs

It’s highly possible that one parent had assumed most of the responsibility for caring for the child on a day-to-day basis. Examples of those tasks could include: Administering medication, coordinating doctors’ visits and processing insurance claims. Therefore, that parent should put together a detailed packet of documents so all parties can have a full grasp on what to expect. Such documents could include:

Two years of explanation of benefits (EOB) from insurance companies
Pediatrician’s records
Doctors’ visits for the past year
Medications and when administered
Child’s allergies and diet requirements
Child’s daily routine

Handling Assets

Divorcing parents need to consider if the child will be able to earn a living and handle his or her financial affairs after the parents die. Most likely, the answer is no. This presents a potential problem that could prevent a disabled child from receiving government assistance if he or she inherits assets …

In Florida, in order for special needs children to receive government help, such as Medicaid, they generally cannot own more than $2,000 worth of assets. If they do, their government benefits stop until they have spent all but $2,000. Then it takes months to resume the government assistance. In addition, government payments do not provide even the federal poverty level of income for a disabled person, let alone money for the little things that make life enjoyable.

A “Special Needs Trust” can allow disabled children to keep government health and disability payments while benefiting from trust assets. These funds could then be used for things like vacations, a specially-fitted van, and other life-enhancing activities and goods.

The disabled child cannot set up the trust or be a trustee. A parent (s) can be a trustee, and there must be a co-trustee, generally a bank or other fiduciary third party. When the parents die, the assets pass to the trust, not directly to the child. The money is then handled by the third party trustee and used to pay for goods and services for the child’s benefit.

How I Can Help

Part of my role as a Certified Divorce Financial Analyst™ and CERTIFIED FINANCIAL PLANNER™ Practitioner in Palm Beach County Florida, is to work closely with attorneys and other professionals to help evaluate the budget needs of the child, identify what government programs might be available and review the parents’ assets. Then I put together a comprehensive plan to help the child be as financially protected as possible.

33rd Annual AAML Institute

cstamp — Sat, 19 Feb 2011 13:52:59 +0000

April 28 – April 30, 2011

Please visit us at the 33rd Annual Institute Conference. Cary and Carl will be attending and hosting a booth.

The Institute, a seminar sponsored by The American Academy of Matrimonial Lawyers, Florida Chapter, is the premiere continuing education opportunity for family law attorneys in Florida. Breakout sessions allow participants to choose tracks most relevant to their specific practice needs to ensure the greatest value to the attendee. National and state-wide presenters are among the top in their fields.

The Institute is THE place to be for the serious family law attorney.

Course Credit Information:

20.0 C.L.E.R. Credits including 4.0 Ethics

18.0 Certification Credits including 18.0 Marital & Family Law; 3.0 Real Estate; 2.0 State/Federal Govt Admin Pract; 1.00 Criminal Trial; 1.00 Civil Trial

SCHEDULE OF EVENTS

Click here for the brochure with the full program schedule.

Thursday, April 28th

9:45 a.m. – 12:00 p.m. – Bonus Seminars for early registrations

1:30 p.m. – 5:30 p.m. – Institute General Session

5:30 p.m. – Cocktail Party

Friday, April 29th

8:00 a.m. – 12:30 p.m. – Institute General Session

12:30 p.m. – 1:45 p.m. – Lunch

1:45 p.m. – 5:00 p.m. – Institute Breakout Sessions

Saturday, April 30th

8:00a.m. – 12:15 p.m. – Institute General Session

National Speakers:

Cheryl Lynn Hepfer, Esq.

John Crabtree, Esq.

Thomas J. Sasser, Esq.

Richard D. West, Esq.

Martin L. Haines, Esq.

Christopher Mercer, ASA

Deborah Day, Psy.D.

Norman D. Levin, Esq.

Kenneth Altshuler, Esq.

David Manz, Esq.

and many more!

Estate Planning Checklist

cstamp — Thu, 17 Feb 2011 21:33:29 +0000

Things to check and double-check before you leave this world.

Presented by Cary B. Stamp

Estate planning is a task that people tend to put off, as any discussion of “the end” tends to be off-putting. However, those who leave this world without their financial affairs in good order risk leaving their heirs some significant problems along with their legacies.

No matter what your age, here are some things you may want to accomplish this year with regard to estate planning.

Create a will if you don’t have one. Who doesn’t have a will? You might be surprised. Some tremendously wealthy people have passed away without leaving a valid will. For example, Pablo Picasso and even Howard Hughes!

It is startling how many people never get around to this, even to the point of buying a will-in-a-box at a stationery store or setting one up online. A recent Lawyers.com survey of 1,022 Americans found that just 35% had wills. (For that matter, only 18% had some kind of trust.)¹

A solid will drafted with the guidance of an estate planning attorney may cost you more than the will-in-a-box, but may prove to be some of the best money you ever spend. A valid will may save your heirs from some expensive headaches linked to probate and ambiguity.

Complement your will with related documents. Depending on your estate planning needs, this could include some kind of trust (or multiple trusts), durable financial and medical powers of attorney, a living will and other items.

You should know that a living will is not the same thing as a durable medical power of attorney. A living will makes your wishes known when it comes to life-prolonging medical treatments, and it takes the form of a directive. A durable medical power of attorney authorizes another party to make medical decisions for you (including end-of-life decisions) if you become incapacitated or otherwise unable to make these decisions.

Review your beneficiary designations. Who is the beneficiary of your IRA? How about your 401(k)? How about your annuity or life insurance policy? If your answer is along the lines of “Mm … you know … I’m pretty sure it’s…” or “It’s been a while since …”, then be sure to check the documents and verify who the designated beneficiary is.

When it comes to retirement accounts and life insurance, many people don’t know that beneficiary designations take priority over bequests made in wills and living trusts. If you long ago named a child now estranged from you as the beneficiary of your life insurance policy, he or she will receive the death benefit when you die – regardless of what your will states.²

Time has a way of altering our beneficiary decisions. This is why some estate planners recommend that you review your beneficiaries every two years.

In some states, you can authorize transfer-on-death designations. This is a tactic against probate: TOD designations may permit the ownership transfer of securities (and in a few states, forms of real property, vehicles and other assets) immediately at your death to the person designated. TOD designations are sometimes referred to as “will substitutes” but they usually pertain only to securities.³

Create asset and debt lists. Does this sound like a lot of work? It may not be. You should provide your heirs with an asset and debt “map” they can follow should you pass away, so that they will be aware of the little details of your wealth.

One list should detail your real property and personal property assets. It should list any real estate you own, and its worth; it should also list personal property items in your home, garage, backyard, warehouse, storage unit or small business that have notable monetary worth.
Another list should detail your bank and brokerage accounts, your retirement accounts, and any other forms of investment plus any insurance policies.
A third list should detail your credit card debts, your mortgage and/or HELOC, and any other outstanding consumer loans.

Think about consolidating your “stray” IRAs and bank accounts. This could make one of your lists a little shorter. Consolidation means fewer account statements, less paperwork for your heirs and fewer administrative fees to bear.

Let your heirs know the causes and charities that mean the most to you. Have you ever seen the phrase, “In lieu of flowers, donations may be made to …” Well, perhaps you would like to suggest donations to this or that charity when you pass. Write down the associations you belong to and the organizations you support. Some non-profits do offer accidental life insurance benefits to heirs of members.

Select a reliable executor. Who have you chosen to administer your estate when the time comes? The choice may seem obvious, but consider a few factors. Is there a stark possibility that your named executor might die before you do? How well does he or she comprehend financial matters or the basic principles of estate law? What if you change your mind about the way you want your assets distributed – can you easily communicate those wishes to that person?

Your executor should have copies of your will, forms of power of attorney, any kind of healthcare proxy or living will, and any trusts you create. In fact, any of your loved ones referenced in these documents should also receive copies of them.

Talk to the professionals. Do-it-yourself estate planning is not recommended, especially if your estate is complex enough to trigger financial, legal and emotional issues among your heirs upon your passing.

Many people have the idea that they don’t need an estate plan because their net worth is less than X dollars. Keep in mind, money isn’t the only reason for an estate plan. You may not be a multimillionaire yet, but if you own a business, have a blended family, have kids with special needs, worry about dementia, or can’t stand the thought of probate delays plus probate fees whittling away at assets you have amassed … well, these are all good reasons to create and maintain an estate planning strategy.

Citations.

1 financial-planning.com/news/Schenkman-lawyers-estate-2665998-1.html [3/1/10]

2 sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/11/02/investopedia6151.DTL [11/2/10]

3 raymondjames.com/branches/c2c/35C/oxleygrouprja/articles/distribution/tod_will_substitutes.pdf [2006]

Lincoln Park Financial Group Team Members Attend Collaborative Family Law Institute Workshop in Miami

cstamp — Mon, 06 Dec 2010 17:53:15 +0000

Cary B. Stamp, CFP^® and Carl Watkins attended the Collaborative Family Law Institutes’ workshop at the University of Miami Law School on November 12^th and 13^th 2010. The workshop was designed as an interactive discussion and training to demonstrate the role of legal, financial and mental health professionals in the collaborative divorce process.

Collaborative divorce was created by Minnesota family lawyer Stu Webb in 1990. The process is designed to reduce the tension and animosity typically associated with a litigated divorce. In the collaborative process, the parties agree to work together and use interest based negotiating as opposed to position based negotiating to resolve their disputes. They also agree not to go to court or threaten to do so.

Mr. Stamp is also a member of the Collaborative Divorce Team, a Palm Beach County group that hopes to raise awareness of collaborative divorce.

Cary B. Stamp is a CERTIFIED FINANCIAL PLANNER™ Professional and Certified Divorce Financial Analyst™. He specializes in helping independent women make informed decisions and take charge of their financial lives. Mr. Stamp is a twenty year veteran of the financial industry and practices in Palm Beach Gardens, FL. His website can be found at: www.MyPalmBeachDivorce.com