Education: You need to know what you’re giving away before you decide to create a financial power of attorney. Spend some time to discuss with your attorney what the document does, and doesn’t do, before you sign any paper work. You should know exactly what it is your POA will do for you before you decide to make on.

Agent: Your financial power of attorney gives someone, called your agent or your attorney-in-fact, specific powers if you should become incapacitated. Take some time to consider who would be best to serve in this position. Though many people automatically name their spouse as their agent, you can choose anyone whom you think is qualified. However, you should ask that person beforehand as no one is under an obligation to take on these powers.

Execution. You must execute your power of attorney document in accordance with state laws. Your attorney will tell you what you need to do to ensure the document is legally valid but you should prepare to have the document signed in front of witnesses and a notary. You should schedule this execution ceremony and have your attorney present to ensure nothing goes wrong.

Safekeeping. Your agent will probably need the original document to properly carry out his duties. You should also keep a copy with yourself or with another trusted person to keep and review or update as needed.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

2011 stands as a clear example of why finding a qualified estate planning attorney to assist you is always in your best interests. This past year, North Carolina saw at least one high-profile criminal conviction for fraudulent estate planning services.

Federal prosecutors in the Western District of North Carolina had a busy year in 2011. The office collected over $13.5 million in fines and asset seizures from both civil and criminal cases, with almost $4 million of the money collected distributed to victims. Just over $1 million of the $4 million distributed amount comes from a single case involving estate planning fraud.

In 2009, Bryan Noel and Alexander Klosek were charged in U.S. District Court with crimes surrounding a fraudulent investment scheme begun by Noel 10 years before. The pair provided estate planning services aimed at retirees, and after jury trials, both were convicted of various criminal charges, including mail fraud. Noel was sentenced to 25 years in prison while Klosek was sentenced to 87 months. The pair was also ordered to forfeit seized property of almost $1 million each, as well as pay restitution of more than $10 million each.

The United States Attorney’s Office states that there were over 100 victims of the fraudulent estate planing scheme. The office has since collected more than $1 million on behalf of those who suffered from the scheme, subsequently releasing it to the clerk of the court for distribution to victims.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

This week’s newsletter is ready for you to view, and we’re excited to share some valuable information with you.  Read our newsletter to find out how market volatility affects estate planning and why you should avoid tapping into your 401(k) if you change jobs or are laid off.  We’ve also included a great video on the technology of storytelling.  Let us know what you think on our Facebook page.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

Find this important articles and more in our newest newsletter.  Click on the icon below to access our online newsletter.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

The Oct 1 Women’s Only 5k for Breast Cancer, rescue dog stories from 9/11, probate seminars, identity theft, and more – we’ve got a lot going on that’s featured in our newest newsletter!   Click on the icon below to find out what’s new from The Law Offices of Cheryl David.  If you’re interested in receiving our e-newsletter, we encourage you to visit our site, www.cheryldavid.com, and sign up on the right column of our home page.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

Our most recent newsletter launched today and in it are some very exciting and informative articles.  We want to call particular attention to our run/walk team sponsored by the office that will complete a 5k on October 1 for Breast Cancer Awareness.  Please click on our logo below to view the full newsletter!

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

I recently ran across this article with some solid, practical advice for empty nesters. When the kids leave home, it can be easy to keep covering certain expenses out of habit. That’s why it’s a good idea to take a fresh look at your household budget and consider making some cuts. Here are some of the tips suggested by the article’s author, Dawn Kawamoto:

• Re-assess your grocery budget
• Remove your adult children from your auto insurance and your cell phone plan
• Take your adult children off your health insurance plan

Perhaps the most painful tip suggested in the article was this:  close the bank of mom and dad. Unlimited financial support for adult children is not good for your finances, and it tends not to be helpful to your children in the long-term. Enforcing limits can benefit everyone involved.

A final note: having a newly-empty nest is one of those life changes (like births, deaths, marriage and divorce) that calls for a re-assessment of your estate plan. So, if you haven’t seen your estate planning attorney in awhile, now might be a good time to make an appointment.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

Forbes.com’s fee-only planner blog recently featured a post entitled “Busting 5 Financial Myths.” Here are three that apply particularly to retirement investing:

• Picking the right investment is the main factor to high returns. Trying to pick a single winner is the wrong idea. Instead, your focus should be on proper asset allocation. Taking into account your goals, time frame, and risk tolerance (not to mention your capacity for risk), the goal is balancing your investments among stocks, bonds, and cash.
• I don’t need to worry about long-term care costs because Medicare will pay for it. Don’t be lulled into a false sense of security: you can’t rely on Medicare to cover your long-term care costs. Medicare does pay for skilled nursing care, but only for a very brief period of time. And most long-term nursing home care costs are specifically excluded from Medicare coverage; however, if you meet the requirements, certain long-term care costs can be picked up by Medicaid. This is why long-term care planning is essential.
• It’s always best to roll your 401(k) at retirement into an IRA. Rolling over your 401(k) when you retire might be a good move for some, but this is not a one-size-fits-all solution. A rollover can mean a loss of asset protection, not to mention the loss of your ability to borrow from your 401(k). On the other hand, an IRA might offer better diversification options and lower fees. The lesson here is that you should fully understand the advantages and disadvantages of each option, and get advice from an experienced, unbiased advisor before making a move.

If you need help making sure your retirement plan is on track, it’s a good idea to talk to a trusted financial advisor.   Call us today to meet with Linus Whitlock, our Certified Financial Planner – (336) 547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

If you are over the age of 70 ½ and have assets in an IRA that you don’t rely on for your living expenses, you might want to consider using a portion of your funds to make a charitable contribution. Here’s why:

Under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (TRA 2010), you’re allowed to make a direct donation of up to $100,000 in IRA funds to an IRS-approved charity. Obviously, this benefits the charity, but it benefits you, too.

First, although you can’t claim the donation as an itemized deduction, the donation counts as a reduction in your Adjusted Gross Income – less income, fewer taxes.  Second, the donation can be counted toward your Required Minimum Distribution (RMD). Since RMD’s are taxable to you, you’re substituting this taxable withdrawal from your account with a tax-free donation to a qualified charity.

Unless Congress takes steps to extend it, this provision of TRA 2010 is scheduled to expire at the end of the year. So, if you’re interested, talk to your estate planning attorney or tax advisor to get the details.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.