Archive for January, 2009
Robert D. Cavanaugh, CLU asked:
Irrevocable Life Insurance Trusts (ILITs) are planning tools used to keep life insurance proceeds outside of the taxable estate.
For example, if a married couple has an estate of 6 million, they can pass 4 million to the next generation with no tax if they set up the proper trust arrangement to take advantage of the maximum lifetime unified credits. That leaves 2 million still subject to tax under the current law.
The logical thing to do is to purchase a survivorship life insurance policy for the projected tax. However, a policy purchased in the manner most people are familiar with, the problem is not solved; it is compounded.
If the couple has any “incidences of ownership” in the policy, it will be included in the estate. The purchase of a one million dollar policy increases the estate to 7 million. Four million passes tax-free, but now the taxable estate is 3 million. This increases the tax by some $225,000.
Enter the Irrevocable Life Insurance Trust.
Attorneys draft Irrevocable Life Insurance Trusts. The trust will apply for its own Federal Tax ID number. The trust will then apply for the survivorship life insurance policy. It will be the applicant, owner and beneficiary of the policy. Typical wording is “The John and Mary Smith Irrevocable Life Insurance Trust dated April 5, 2007, JPMorgan Chase Bank, trustee.”
In this example, since neither John nor Mary has any “incidence of ownership” in the policy, it will not be part of their taxable estate.
The Owner and Beneficiary
As opposed to using an ILIT, I have worked with a few cases where the only child or children are the owner and beneficiary. This may work. However, each year the parents gift the money to pay the premium, there is no assurance that the money will be used to pay the premium. Furthermore, the children, as owners, have access to the cash values. An ILIT has much more assurance.
I have seen the trustee be a child, the couple’s attorney, accountant or a long-time family friend. All of these will work, but an un-biased third party, such as a bank, is much better. If an individual is the trustee, name a bank as the successor trustee. Banks don’t die.
The Crummey Letter
Typically, the life insurance premiums are paid by the parents in the form of annual gifts to the Irrevocable Life Insurance Trust. Currently (2007) a person can give up to $12,000 each year to as many people as they want without paying gift tax or having the amount subtracted from their lifetime exclusion. However, these gifts must be “present interest” gifts, which mean the recipient must have immediate rights to the gift.
Gifts to an ILIT, for paying premiums on a life insurance policy owned by the ILIT, are not “present interest” gifts. A “Crummey” letter qualifies the gift as a “present interest” gift. The letter is not crummy or poorly written; the letter takes its name from a court case initiated in 1968 by Clifford Crummey, who was trying to do this very same thing: make annual gifts present interest gifts. Ultimately, the outcome of the case required the use of a letter, now known as the “Crummey” letter.
A letter is sent every year to each of the beneficiaries of the ILIT. It simply states that a gift has been made to the ILIT and they can withdraw it if they want within a certain timeframe, usually 30 or 60 days. If they don’t exercise this right, the gift becomes a present interest gift.
Obviously, there is an “understanding” between the parents and children to ignore these letters, as it is a part of the overall estate plan. The annual gifts and the ensuing yearly Crummey letters do not have to go to children with a legal capacity, such as age 18. I have seen letters written to 4-month-old babies. In this case, even though the baby was not able to read the letter or understand the estate planning rationale behind it, it did not exercise its right to the gift. Phew, another legal bullet dodged.
As you can see, it is very important to arrange for the annual drafting of these Crummey letters. Some banks’ trust departments used to provide this service if they were the trustee of the trust. This was just a courtesy as they never would see or manage any of the life insurance proceeds.
The best bet is to have your attorney do the letters. I have one client whose law firm (under a written set of instructions) has the premium notice from the life insurance company sent to their firm, prepare and send the Crummey letters and then pay the premium. All the client has to do is open a letter each year from the law firm indicating a premium is due and send them a check. Other than that, they don’t have to lift a finger. A nice service.
If you have an estate that will be subject to estate taxes and your advisors suggest a life insurance policy to pay the tax at a discount, make sure you evaluate the use of an Irrevocable Life Insurance Trust.
Clement Depierre
Irrevocable Life Insurance Trusts (ILITs) are planning tools used to keep life insurance proceeds outside of the taxable estate.
For example, if a married couple has an estate of 6 million, they can pass 4 million to the next generation with no tax if they set up the proper trust arrangement to take advantage of the maximum lifetime unified credits. That leaves 2 million still subject to tax under the current law.
The logical thing to do is to purchase a survivorship life insurance policy for the projected tax. However, a policy purchased in the manner most people are familiar with, the problem is not solved; it is compounded.
If the couple has any “incidences of ownership” in the policy, it will be included in the estate. The purchase of a one million dollar policy increases the estate to 7 million. Four million passes tax-free, but now the taxable estate is 3 million. This increases the tax by some $225,000.
Enter the Irrevocable Life Insurance Trust.
Attorneys draft Irrevocable Life Insurance Trusts. The trust will apply for its own Federal Tax ID number. The trust will then apply for the survivorship life insurance policy. It will be the applicant, owner and beneficiary of the policy. Typical wording is “The John and Mary Smith Irrevocable Life Insurance Trust dated April 5, 2007, JPMorgan Chase Bank, trustee.”
In this example, since neither John nor Mary has any “incidence of ownership” in the policy, it will not be part of their taxable estate.
The Owner and Beneficiary
As opposed to using an ILIT, I have worked with a few cases where the only child or children are the owner and beneficiary. This may work. However, each year the parents gift the money to pay the premium, there is no assurance that the money will be used to pay the premium. Furthermore, the children, as owners, have access to the cash values. An ILIT has much more assurance.
I have seen the trustee be a child, the couple’s attorney, accountant or a long-time family friend. All of these will work, but an un-biased third party, such as a bank, is much better. If an individual is the trustee, name a bank as the successor trustee. Banks don’t die.
The Crummey Letter
Typically, the life insurance premiums are paid by the parents in the form of annual gifts to the Irrevocable Life Insurance Trust. Currently (2007) a person can give up to $12,000 each year to as many people as they want without paying gift tax or having the amount subtracted from their lifetime exclusion. However, these gifts must be “present interest” gifts, which mean the recipient must have immediate rights to the gift.
Gifts to an ILIT, for paying premiums on a life insurance policy owned by the ILIT, are not “present interest” gifts. A “Crummey” letter qualifies the gift as a “present interest” gift. The letter is not crummy or poorly written; the letter takes its name from a court case initiated in 1968 by Clifford Crummey, who was trying to do this very same thing: make annual gifts present interest gifts. Ultimately, the outcome of the case required the use of a letter, now known as the “Crummey” letter.
A letter is sent every year to each of the beneficiaries of the ILIT. It simply states that a gift has been made to the ILIT and they can withdraw it if they want within a certain timeframe, usually 30 or 60 days. If they don’t exercise this right, the gift becomes a present interest gift.
Obviously, there is an “understanding” between the parents and children to ignore these letters, as it is a part of the overall estate plan. The annual gifts and the ensuing yearly Crummey letters do not have to go to children with a legal capacity, such as age 18. I have seen letters written to 4-month-old babies. In this case, even though the baby was not able to read the letter or understand the estate planning rationale behind it, it did not exercise its right to the gift. Phew, another legal bullet dodged.
As you can see, it is very important to arrange for the annual drafting of these Crummey letters. Some banks’ trust departments used to provide this service if they were the trustee of the trust. This was just a courtesy as they never would see or manage any of the life insurance proceeds.
The best bet is to have your attorney do the letters. I have one client whose law firm (under a written set of instructions) has the premium notice from the life insurance company sent to their firm, prepare and send the Crummey letters and then pay the premium. All the client has to do is open a letter each year from the law firm indicating a premium is due and send them a check. Other than that, they don’t have to lift a finger. A nice service.
If you have an estate that will be subject to estate taxes and your advisors suggest a life insurance policy to pay the tax at a discount, make sure you evaluate the use of an Irrevocable Life Insurance Trust.
Clement Depierre
Sharon Vaz asked:
Many adults are getting married with children already in the wings. The result – blended families – can be greatly rewarding, although not without conflict. This article highlights some areas of concern for blended families and how to deal with them.
It is not uncommon these days for couples to pursue remarriage with children already in tow. Blended family statistics show that at least one in three Americans is now a stepchild, stepparent, a stepsibling, or some part of a blended family.
Blended families are usually the result of remarriage after divorce, where both bride and groom have kids under their wings. Or perhaps it’s a first time wedding for two single parents. Whatever the reason, families that are united by virtue of marriage and not blood are on the rise, bringing hope and stability to many people’s lives.
Blended Family Remarriage Conflicts
It’s not much of a surprise, however, that kids who suddenly have to deal with a “stepmother” or “stepfather” tend to shy away, become closed off, or openly rebel towards change. It’s a normal blended family issue that can be dealt with successfully; one must be prepared for resistance though.
Another blended family problem that often crops up is experienced by adults who can’t deal with children that are not their own. This usually stems from the idea that because a child is not one’s own flesh and blood, one has no real right to get involved in that child’s life. Like every other blended family conflict, it can be dealt with positively and effectively.
If you are part of a stepfamily, you’re probably familiar with these and other situations. The good news is, these are all perfectly normal and each situation can be resolved given sufficient time, love, and understanding.
The following are some common stepfamily conflicts and how you can handle them positively, solidifying your family’s unity and strength.
The Blended Family – Start Off With A Statement
It’s a good idea to make a commitment from the very beginning of your relationship. Couples have found that engaging in a unity family ceremony during the wedding is a great way to encourage family members to accept and love each other.
Basically, a unity family ceremony is when the bride, groom, and children all take turns pouring different colored sand into a glass jar or vase, creating a unique symbol of their unity. Families can also recite a blended family vow for the wedding to verbally signify their commitment to unity and harmony. It’s a great step towards getting along with each other and is very conducive to the growth of familial relationships.
The Blended Family – Decide On Where to Live
A big factor in establishing harmony in a family is your place of residence after getting married. Obviously, there’s no place like home and some children resent the idea of having to move into a step-siblings house (while the original resident stepsibling doesn’t have to endure the same sacrifice). A new home for everyone means the entire family has to start over and everyone is equal. It can be refreshing and exciting to move into a new home together.
The Blended Family – Face and Bury Old Conflicts
If a family is formed after a remarriage, children and parents are liable to carry over hurts and resentments from the previous marriage that can affect the harmony of the new family. For example, anger towards ex-husbands or wives, disappointment in children that their biological parents won’t ever work things out – these things can be deeply painful to deal with.
It’s best to handle these issues in a loving, non-judgmental manner, with everyone agreeing to support each other until the emotional wounds have healed. Constant verbal support and affirmation, hugs and kisses, and other forms of affection can all have massive impact on individual feelings.
Being negative and standoffish will only perpetuate ill-feelings and disharmony. Start your remarriage by being positive and strong for others in all situations.
How to Build Blended Family Relationships
The overall secret to building a strong blended family is to pay attention to the feelings of everyone involved and to build good faith between each other as a result.
Regarding the issue of discipline: a parent can start exerting authority and instating rules once he or she has earned the trust of the children. You can do this by listening, empathizing, and taking a genuine liking to a child’s interests. Once you have proved you are for real and you truly care, they will trust you even when you discipline. It’s all about building caring relationships above anything else.
We wish all parents and children good luck as you strive to build a strong blended family. To quote the Beatles, “All you need is love.” That, in a nutshell, is what makes both natural and blended families work out.
Santiago Shank
Many adults are getting married with children already in the wings. The result – blended families – can be greatly rewarding, although not without conflict. This article highlights some areas of concern for blended families and how to deal with them.
It is not uncommon these days for couples to pursue remarriage with children already in tow. Blended family statistics show that at least one in three Americans is now a stepchild, stepparent, a stepsibling, or some part of a blended family.
Blended families are usually the result of remarriage after divorce, where both bride and groom have kids under their wings. Or perhaps it’s a first time wedding for two single parents. Whatever the reason, families that are united by virtue of marriage and not blood are on the rise, bringing hope and stability to many people’s lives.
Blended Family Remarriage Conflicts
It’s not much of a surprise, however, that kids who suddenly have to deal with a “stepmother” or “stepfather” tend to shy away, become closed off, or openly rebel towards change. It’s a normal blended family issue that can be dealt with successfully; one must be prepared for resistance though.
Another blended family problem that often crops up is experienced by adults who can’t deal with children that are not their own. This usually stems from the idea that because a child is not one’s own flesh and blood, one has no real right to get involved in that child’s life. Like every other blended family conflict, it can be dealt with positively and effectively.
If you are part of a stepfamily, you’re probably familiar with these and other situations. The good news is, these are all perfectly normal and each situation can be resolved given sufficient time, love, and understanding.
The following are some common stepfamily conflicts and how you can handle them positively, solidifying your family’s unity and strength.
The Blended Family – Start Off With A Statement
It’s a good idea to make a commitment from the very beginning of your relationship. Couples have found that engaging in a unity family ceremony during the wedding is a great way to encourage family members to accept and love each other.
Basically, a unity family ceremony is when the bride, groom, and children all take turns pouring different colored sand into a glass jar or vase, creating a unique symbol of their unity. Families can also recite a blended family vow for the wedding to verbally signify their commitment to unity and harmony. It’s a great step towards getting along with each other and is very conducive to the growth of familial relationships.
The Blended Family – Decide On Where to Live
A big factor in establishing harmony in a family is your place of residence after getting married. Obviously, there’s no place like home and some children resent the idea of having to move into a step-siblings house (while the original resident stepsibling doesn’t have to endure the same sacrifice). A new home for everyone means the entire family has to start over and everyone is equal. It can be refreshing and exciting to move into a new home together.
The Blended Family – Face and Bury Old Conflicts
If a family is formed after a remarriage, children and parents are liable to carry over hurts and resentments from the previous marriage that can affect the harmony of the new family. For example, anger towards ex-husbands or wives, disappointment in children that their biological parents won’t ever work things out – these things can be deeply painful to deal with.
It’s best to handle these issues in a loving, non-judgmental manner, with everyone agreeing to support each other until the emotional wounds have healed. Constant verbal support and affirmation, hugs and kisses, and other forms of affection can all have massive impact on individual feelings.
Being negative and standoffish will only perpetuate ill-feelings and disharmony. Start your remarriage by being positive and strong for others in all situations.
How to Build Blended Family Relationships
The overall secret to building a strong blended family is to pay attention to the feelings of everyone involved and to build good faith between each other as a result.
Regarding the issue of discipline: a parent can start exerting authority and instating rules once he or she has earned the trust of the children. You can do this by listening, empathizing, and taking a genuine liking to a child’s interests. Once you have proved you are for real and you truly care, they will trust you even when you discipline. It’s all about building caring relationships above anything else.
We wish all parents and children good luck as you strive to build a strong blended family. To quote the Beatles, “All you need is love.” That, in a nutshell, is what makes both natural and blended families work out.
Santiago Shank
Alex Stewart asked:
Planning your next family vacation? Dreading spending ten hours in the car followed by five days dragging your kids to the beach, the hotel pool and a local restaurant that doesn’t offer a children’s menu? If you’re looking for a vacation that will show both you and the kids a good time, cruising could be it.
To learn about the benefits and drawbacks of family cruise vacations, keep reading to find out the best tips for planning your first or next family cruise.
Why a Family Cruise Vacation?
Because so many cruise ships are targeted directly toward families, you’re getting a fully packaged vacation in a safe and contained environment. There are daily, scheduled activities for the children along with parental getaways that both allow you to enjoy time with your children and also have your own private vacation.
Most cruise lines either offer “day camp” options with regularly scheduled, on-board activities or supervised daycare facilities. Because your children are on a boat with you and under the care of a well-screened and professionally-supervised staff, you can rest a little easier.
Isn’t it Expensive?
Cruising can be expensive, but most family cruise vacations typically cost about $500-$1000 per person per week. Add up the cost of all the hotels, meals, souvenirs and mileage that your last vacation cost you and compare it to that figure. You’ll quickly see that a cruise vacation budgets in at about the same rate as a full, family vacation.
How do I a Book a “Family” Cruise?
Most cruise lines offer family-specific or family-friendly cruises that are geared specifically toward families with children. Ideally, you want to choose one of these rather than, say, a Senior’s cruise or a Single’s cruise.
Cruise lines like Disney or Norwegian also offer themed ships with full youth programs that are targeted to specific age groups from toddlers to teens. Again, this affords you the chance to take a break and enjoy the pool on your own.
When booking a full family cruise, you may want to consider a travel agent. Often, they’re able to discuss ship amenities, past client reviews and possible discounts.
However, if you’re searching alone and online, try reading past traveler reviews of each individual ship. This will provide you a clearer indication of the ship’s facilities and accommodations than the cruise line’s promotional website.
Things to Consider Before Departure
Make sure everyone in your family has their passport, travel health insurance and extra medication. Keep all your documents in a safe and secure place with one person.
Also, make a copy of all key family documents and give them to a trusted relative or friend. If you lose one of them on the trip, you can contact that person either to have the information read over the phone or (as needed) faxed to you.
Finally, before packing for your trip, make a master check list to work from to help ensure that nothing is inadvertently left behind.
Cortez Fuchser
Planning your next family vacation? Dreading spending ten hours in the car followed by five days dragging your kids to the beach, the hotel pool and a local restaurant that doesn’t offer a children’s menu? If you’re looking for a vacation that will show both you and the kids a good time, cruising could be it.
To learn about the benefits and drawbacks of family cruise vacations, keep reading to find out the best tips for planning your first or next family cruise.
Why a Family Cruise Vacation?
Because so many cruise ships are targeted directly toward families, you’re getting a fully packaged vacation in a safe and contained environment. There are daily, scheduled activities for the children along with parental getaways that both allow you to enjoy time with your children and also have your own private vacation.
Most cruise lines either offer “day camp” options with regularly scheduled, on-board activities or supervised daycare facilities. Because your children are on a boat with you and under the care of a well-screened and professionally-supervised staff, you can rest a little easier.
Isn’t it Expensive?
Cruising can be expensive, but most family cruise vacations typically cost about $500-$1000 per person per week. Add up the cost of all the hotels, meals, souvenirs and mileage that your last vacation cost you and compare it to that figure. You’ll quickly see that a cruise vacation budgets in at about the same rate as a full, family vacation.
How do I a Book a “Family” Cruise?
Most cruise lines offer family-specific or family-friendly cruises that are geared specifically toward families with children. Ideally, you want to choose one of these rather than, say, a Senior’s cruise or a Single’s cruise.
Cruise lines like Disney or Norwegian also offer themed ships with full youth programs that are targeted to specific age groups from toddlers to teens. Again, this affords you the chance to take a break and enjoy the pool on your own.
When booking a full family cruise, you may want to consider a travel agent. Often, they’re able to discuss ship amenities, past client reviews and possible discounts.
However, if you’re searching alone and online, try reading past traveler reviews of each individual ship. This will provide you a clearer indication of the ship’s facilities and accommodations than the cruise line’s promotional website.
Things to Consider Before Departure
Make sure everyone in your family has their passport, travel health insurance and extra medication. Keep all your documents in a safe and secure place with one person.
Also, make a copy of all key family documents and give them to a trusted relative or friend. If you lose one of them on the trip, you can contact that person either to have the information read over the phone or (as needed) faxed to you.
Finally, before packing for your trip, make a master check list to work from to help ensure that nothing is inadvertently left behind.
Cortez Fuchser
Phyllis Goldberg, Ph.D. asked:
Is the widespread commercialism of the holidays getting you down? How would you like to spend less time racking up credit card debt and more time putting heart into your relationships? It’s important to appreciate the traditions of giving and receiving. But the accumulation of stuff can’t hold a candle to the gift that matters most. This year, recreate the joy of simpler days by giving the priceless gift of connection to your family.
There’s a lot riding on family time during the holidays and this can create stress for everyone. With blended families, there’s the challenge of logistics – trying to accommodate so many others’ needs and still not compromise your own. And when family members live in different cities, it’s hard to decide which is more difficult – going back home or having them on your turf. Of course, there are the ghosts of holidays past, coupled with the expectations of today – sometimes unrealistic and often unfulfilled.
So, how can you stop the inertia and catapult yourself off the couch, into the action? The following eight tips will help you develop a plan to restore balance to your relationships during the holidays:
1. Realize that the anticipatory anxiety you are experiencing is quite normal. Questions about what to do and how to do it – with the apprehension that goes along for the ride – are common for a lot of families at this time of year.
2. If you’re traveling home to your parents, remember to pack your patience. Old family dynamics and unfinished business are bound to surface. Make a decision this year to leave behind the baggage that is too large to fit in the overhead compartment.
3. Explore the possibility of your out of town guests staying in a hotel. After the discomfort of bringing up the idea, it actually might be a relief for all of you; and the beginning of a welcome new family tradition.
4. You don’t have to be all things to all people all the time. If Aunt Sue doesn’t get along with Uncle John’s second wife, make it easier on yourself and stagger their holiday visits.
5. If you get into a conflict with a family member who is unreasonable, don’t take the bait. Despite how hard it may be, go for the higher ground and walk away.
6. With a relationship that matters to you, take the time to bury the hatchet. If in the past you have gone underground and then blown up later, don’t let these feelings fester. Acknowledge the part that you play in the conflict and deal with it now, once and for all.
7. Whether family members are with you in person or in your memories, learn the power of letting go of childhood pain and longings. Forgiveness becomes a gift for both of you.
8. Recall what you love about your family and let them know how grateful you are to have them in your life. Point out their positives qualities rather than focusing on the negatives.
Perhaps you don’t have many models for repairing the family and may have to make it up as you go along. Trust yourself in the process – often the messiness of emotions leads to understanding yourself and others better. Conflict can serve as an invitation to grow when you honor the importance of relationships. A lot of people feel that, with family, there are no returns or exchanges even with a gift receipt. So embrace the holiday season and rejoice in the love, support and connection of your family relationships.
© 2007, Her Mentor Center
Bobbie Wabasha
Is the widespread commercialism of the holidays getting you down? How would you like to spend less time racking up credit card debt and more time putting heart into your relationships? It’s important to appreciate the traditions of giving and receiving. But the accumulation of stuff can’t hold a candle to the gift that matters most. This year, recreate the joy of simpler days by giving the priceless gift of connection to your family.
There’s a lot riding on family time during the holidays and this can create stress for everyone. With blended families, there’s the challenge of logistics – trying to accommodate so many others’ needs and still not compromise your own. And when family members live in different cities, it’s hard to decide which is more difficult – going back home or having them on your turf. Of course, there are the ghosts of holidays past, coupled with the expectations of today – sometimes unrealistic and often unfulfilled.
So, how can you stop the inertia and catapult yourself off the couch, into the action? The following eight tips will help you develop a plan to restore balance to your relationships during the holidays:
1. Realize that the anticipatory anxiety you are experiencing is quite normal. Questions about what to do and how to do it – with the apprehension that goes along for the ride – are common for a lot of families at this time of year.
2. If you’re traveling home to your parents, remember to pack your patience. Old family dynamics and unfinished business are bound to surface. Make a decision this year to leave behind the baggage that is too large to fit in the overhead compartment.
3. Explore the possibility of your out of town guests staying in a hotel. After the discomfort of bringing up the idea, it actually might be a relief for all of you; and the beginning of a welcome new family tradition.
4. You don’t have to be all things to all people all the time. If Aunt Sue doesn’t get along with Uncle John’s second wife, make it easier on yourself and stagger their holiday visits.
5. If you get into a conflict with a family member who is unreasonable, don’t take the bait. Despite how hard it may be, go for the higher ground and walk away.
6. With a relationship that matters to you, take the time to bury the hatchet. If in the past you have gone underground and then blown up later, don’t let these feelings fester. Acknowledge the part that you play in the conflict and deal with it now, once and for all.
7. Whether family members are with you in person or in your memories, learn the power of letting go of childhood pain and longings. Forgiveness becomes a gift for both of you.
8. Recall what you love about your family and let them know how grateful you are to have them in your life. Point out their positives qualities rather than focusing on the negatives.
Perhaps you don’t have many models for repairing the family and may have to make it up as you go along. Trust yourself in the process – often the messiness of emotions leads to understanding yourself and others better. Conflict can serve as an invitation to grow when you honor the importance of relationships. A lot of people feel that, with family, there are no returns or exchanges even with a gift receipt. So embrace the holiday season and rejoice in the love, support and connection of your family relationships.
© 2007, Her Mentor Center
Bobbie Wabasha
The Secrets To Preparing A Last Will & Testament That Protects Your Family and Preserves Your Assets
Nicholas Giuditta asked:
You are a busy professional or business executive who must serve his clients or build his business. However, you also have a family and significant personal assets that require your attention. How can you find the time to both grow your business and ensure that your assets are not devoured by estate taxes upon your death? Selecting an experienced trust and estate planning attorney is critical.
Federal and State estate taxes can erode as much as 70 percent of your estate leaving your loved ones with significantly less money than you had anticipated. A credit shelter or tax savings trust, included in your Will and that of your spouse, can eliminate or reduce these devastating taxes. In order for a tax savings trust to work, assets owned by you and your spouse must be titled so that each owns approximately the same amount of assets in their own name. Upon the death of the first spouse, assets are transferred to the trust. The assets then pass tax free to your children upon the death of your spouse.
For some individuals, the use of an irrevocable life insurance trust is also a key component to reduce the bite of death taxes. This trust will become the owner of a life insurance contract and will receive the death benefit upon the death of the surviving spouse in a marriage. The proceeds from the policy will be excluded from the estate of the surviving spouse, thereby eliminating or reducing the estate tax to be paid. Furthermore, the remaining monies in the trust can then be distributed tax free to your children or other chosen beneficiaries.
In addition to preserving your financial estate, protecting your children in the event you and your spouse die before they are eighteen (18) is a fundamental goal of any successful estate plan. The Will should designate an individual known as a guardian who will assume parenting responsibilities. This person should share your child rearing philosophy and be mentally and physically able to perform this difficult and challenging task. Naming an elderly parent as guardian is not recommended. Many individuals will name a trusted brother or sister and their spouse. It is not a good idea to name a brother-in-law or sister-in-law to serve with your sibling as a co-guardian. Who is to say if that in-law will remain married to your sibling? You do not want an estranged in-law with a legal claim to raise your children.
Careful consideration should also be given to the choice of an executor for your estate. An executor should be a responsible and organized person. This individual could be a spouse, adult child or trusted professional. An executor will work with an attorney to probate the Will and to value the assets of the decedent as of the date of death. Thereafter, estate debts and taxes will be paid by the executor with the balance of the estate being distributed to the beneficiaries in accordance with the terms of his Will.
It is important to realize that without a properly prepared Will the State and Federal government will receive more of your estate than you may believe. Moreover, without a Will the beneficiaries of the estate you have worked a lifetime to accumulate will be decided by the State and not you. In many instances, these State mandated beneficiaries are not the same people you would have named in a Will.
In conclusion, a properly prepared Last Will and Testament with the appropriate tax savings trust and the proper selection of an executor and guardian will preserve your assets and provide the peace of mind you and your loved ones deserve.
Aletha Douet
You are a busy professional or business executive who must serve his clients or build his business. However, you also have a family and significant personal assets that require your attention. How can you find the time to both grow your business and ensure that your assets are not devoured by estate taxes upon your death? Selecting an experienced trust and estate planning attorney is critical.
Federal and State estate taxes can erode as much as 70 percent of your estate leaving your loved ones with significantly less money than you had anticipated. A credit shelter or tax savings trust, included in your Will and that of your spouse, can eliminate or reduce these devastating taxes. In order for a tax savings trust to work, assets owned by you and your spouse must be titled so that each owns approximately the same amount of assets in their own name. Upon the death of the first spouse, assets are transferred to the trust. The assets then pass tax free to your children upon the death of your spouse.
For some individuals, the use of an irrevocable life insurance trust is also a key component to reduce the bite of death taxes. This trust will become the owner of a life insurance contract and will receive the death benefit upon the death of the surviving spouse in a marriage. The proceeds from the policy will be excluded from the estate of the surviving spouse, thereby eliminating or reducing the estate tax to be paid. Furthermore, the remaining monies in the trust can then be distributed tax free to your children or other chosen beneficiaries.
In addition to preserving your financial estate, protecting your children in the event you and your spouse die before they are eighteen (18) is a fundamental goal of any successful estate plan. The Will should designate an individual known as a guardian who will assume parenting responsibilities. This person should share your child rearing philosophy and be mentally and physically able to perform this difficult and challenging task. Naming an elderly parent as guardian is not recommended. Many individuals will name a trusted brother or sister and their spouse. It is not a good idea to name a brother-in-law or sister-in-law to serve with your sibling as a co-guardian. Who is to say if that in-law will remain married to your sibling? You do not want an estranged in-law with a legal claim to raise your children.
Careful consideration should also be given to the choice of an executor for your estate. An executor should be a responsible and organized person. This individual could be a spouse, adult child or trusted professional. An executor will work with an attorney to probate the Will and to value the assets of the decedent as of the date of death. Thereafter, estate debts and taxes will be paid by the executor with the balance of the estate being distributed to the beneficiaries in accordance with the terms of his Will.
It is important to realize that without a properly prepared Will the State and Federal government will receive more of your estate than you may believe. Moreover, without a Will the beneficiaries of the estate you have worked a lifetime to accumulate will be decided by the State and not you. In many instances, these State mandated beneficiaries are not the same people you would have named in a Will.
In conclusion, a properly prepared Last Will and Testament with the appropriate tax savings trust and the proper selection of an executor and guardian will preserve your assets and provide the peace of mind you and your loved ones deserve.
Aletha Douet
Joseph Kenny asked:
Everybody wants to give their children the best possible start in life, and make their future as secure as possible. Two ways of helping them, money-wise, are by encouraging them to save with their own bank account, and by making investments on their behalf.
Children’s Accounts
Most high street banks offer children’s accounts, usually a straightforward bank account with a moderate interest rate. These often come with incentives like free piggy banks that are intended to help children develop a sense of responsibility and prudence about money from an early age. You may like to give your child a financial education by opening them their ‘own’ account – though there’s nothing to stop you using a normal adult account with better rates of interest.
National Savings
The Children’s Bonus Bonds are a tax-free savings account specifically aimed at children. You can invest between £25 and £3000 a year for five years and get guaranteed interest, plus a bonus. Many people choose to give Premium Bonds as gifts for children’s birthdays. If they win, it could give them the best present ever!
Child Trust Bonds
The government have introduced a special scheme to give children a savings account from the very beginning. Any child born after 1st September 2002 is entitled to a voucher worth £250 to be invested in a savings account. Visit www.childtrustfund.gov.uk for details.
It’s a good idea to invest for your children’s’ education as early as possible – whether that means private school fees or supporting them when they go into higher education. Long term investments, such as bonds with a ten year term, are a good choice for this purpose.
Children are taxed in the same way as adults, and have their own personal tax allowances. If you give money or assets to your own child and it produces an income of £100 or over, the income is counted as yours and taxed at your top rate. You can avoid this rule by choosing investments with tax free returns or capital gains, rather than income.
If people other than parents give gifts then the income counts as the child’s own, and in this case it’s a good idea to ask grandparents or relatives to send a letter or card with any money gifts. That way you have proof of whom the money came from in case the tax office demands it. For a detailed explanation of children’s tax issues, look up the Inland Revenue’s website at www.hmrc.gov.uk
Kirby Mcgivney
Everybody wants to give their children the best possible start in life, and make their future as secure as possible. Two ways of helping them, money-wise, are by encouraging them to save with their own bank account, and by making investments on their behalf.
Children’s Accounts
Most high street banks offer children’s accounts, usually a straightforward bank account with a moderate interest rate. These often come with incentives like free piggy banks that are intended to help children develop a sense of responsibility and prudence about money from an early age. You may like to give your child a financial education by opening them their ‘own’ account – though there’s nothing to stop you using a normal adult account with better rates of interest.
National Savings
The Children’s Bonus Bonds are a tax-free savings account specifically aimed at children. You can invest between £25 and £3000 a year for five years and get guaranteed interest, plus a bonus. Many people choose to give Premium Bonds as gifts for children’s birthdays. If they win, it could give them the best present ever!
Child Trust Bonds
The government have introduced a special scheme to give children a savings account from the very beginning. Any child born after 1st September 2002 is entitled to a voucher worth £250 to be invested in a savings account. Visit www.childtrustfund.gov.uk for details.
It’s a good idea to invest for your children’s’ education as early as possible – whether that means private school fees or supporting them when they go into higher education. Long term investments, such as bonds with a ten year term, are a good choice for this purpose.
Children are taxed in the same way as adults, and have their own personal tax allowances. If you give money or assets to your own child and it produces an income of £100 or over, the income is counted as yours and taxed at your top rate. You can avoid this rule by choosing investments with tax free returns or capital gains, rather than income.
If people other than parents give gifts then the income counts as the child’s own, and in this case it’s a good idea to ask grandparents or relatives to send a letter or card with any money gifts. That way you have proof of whom the money came from in case the tax office demands it. For a detailed explanation of children’s tax issues, look up the Inland Revenue’s website at www.hmrc.gov.uk
Kirby Mcgivney
dhlim88 asked:
Do say what you really mean to prevent any lost trust in your making up relationship
I know that some couples are very afraid of saying something wrong to their love partners and feel very self-controlled and hardly feel any sense of security for themselves. These sorts of problems have been happening around and as a writer of this article, I am going to share that there is nothing for you to fear, because no matter what, as long as you have the faith and trust with your love partner, everything will be fine. However, you have to bear in mind forever that you have to say something that is relevant, not anything that is so stupid and lame that other people may be classifying you as childish acts.
The first agreement is “be impeccable with your word.” In other words, speak with integrity–saying only what you mean. We think this is really important in relationships of all kinds and especially in intimate ones. If you aren’t impeccable with your word, trust begins to erode within the relationship–and we’re not just talking about the big stuff. Our belief is that there is no small stuff in relationships.
When Karen Sim bought her new used Buick, the dealership couldn’t find the remote control and an extra key. In fact they said that this model didn’t come with one. A mechanic even looked at it and said that it wasn’t wired for a remote. To Karen Sim, a remote is a nice amenity but not a necessity. But–she’d had one with her previous car and this new car just didn’t feel as nice because there was something missing. Trying to get to the bottom of the problem, Pete sat in the dealership and made the dealers look in the specs to see if a remote was standard equipment for this model or not. To make a long story short, Pete managed to get a remote for the car.
Because we were told that the car didn’t have a remote and it through persistence found out it did, we have an issue with trust with that dealership. We’ll put a question mark in front of anything they say from now on. Isn’t this the way it is in relationships? It’s like Steven Covey’s concept of the emotional bank account in “The Seven Habits of Highly Effective People.” Good deeds, kind words and following through on your agreements build deposits in your emotional bank account with another person. False statements, not following through on agreements create withdrawals in an emotional bank account in a relationship. The idea is that you must make many more deposits than withdrawals to keep the trust level high between the two of you.
Being impeccable with your word means following through on what you say you’re going to do. Karen Sim asked Pete to use the weed eater the clear the weeds along the driveway this weekend and Pete said he would. Although this is a small matter, if he hadn’t followed through and whacked the weeds when he said he would, some of the trust between them would be eroded. When we don’t follow through on what we say we’re going to do on the small stuff, doubt creeps in about follow through on the “big stuff” too.
Being impeccable also means being conscious of what you say and the intention behind it. Have you ever said something that you really didn’t mean? As soon as it left your mouth, you wished you could capture it and destroy it before anyone could hear it? The challenge of being impeccable is to be aware of how you are feeling, watch what triggers you, and stay in the present moment without reacting from past unhealthy patterns and old family tapes.
This week as you go through your day, be very aware of what comes out of your mouth. Be very conscious of what promises you make and what you say to someone when you are emotionally triggered. Make a new agreement, as Don Miguel Ruiz says, to be impeccable with your word.
Indeed, life is short. Don’t let another day go by without taking a chance on happiness. You will never know until you try, so remember to make a move today. It can change or affect the rest of your life, therefore, at the very least, you can try to come out something for your ex love partner during your weekend plans. With a little practice, perseverance and patience, I believe that your relationship could be enhanced with the tips that I have shared earlier. If you have faced any problems with your loved ones, do not hesitate to visit this piece of article again.
I really have a strong belief that if you can understand what I have explained and applied what you have learnt from this piece of article, your problems can be eventually solved and your making up relationship can become more stable and stronger. I wish all the best for your making up relationship with your partner. Do always remember to spread word of mouth to your fellow friends for supporting the decision of having making up than breaking up.
Should I get back together with my ex?
Watch a video that shows you exactly what you must NEVER do, what you should do to get your ex back and why at http://www.squidoo.com/how_can_i_retrieve_my_ex_lover_back
You will also learn how to reverse the situation if you have already done those things that should NEVER be done.
Emelda Blumstein
Do say what you really mean to prevent any lost trust in your making up relationship
I know that some couples are very afraid of saying something wrong to their love partners and feel very self-controlled and hardly feel any sense of security for themselves. These sorts of problems have been happening around and as a writer of this article, I am going to share that there is nothing for you to fear, because no matter what, as long as you have the faith and trust with your love partner, everything will be fine. However, you have to bear in mind forever that you have to say something that is relevant, not anything that is so stupid and lame that other people may be classifying you as childish acts.
The first agreement is “be impeccable with your word.” In other words, speak with integrity–saying only what you mean. We think this is really important in relationships of all kinds and especially in intimate ones. If you aren’t impeccable with your word, trust begins to erode within the relationship–and we’re not just talking about the big stuff. Our belief is that there is no small stuff in relationships.
When Karen Sim bought her new used Buick, the dealership couldn’t find the remote control and an extra key. In fact they said that this model didn’t come with one. A mechanic even looked at it and said that it wasn’t wired for a remote. To Karen Sim, a remote is a nice amenity but not a necessity. But–she’d had one with her previous car and this new car just didn’t feel as nice because there was something missing. Trying to get to the bottom of the problem, Pete sat in the dealership and made the dealers look in the specs to see if a remote was standard equipment for this model or not. To make a long story short, Pete managed to get a remote for the car.
Because we were told that the car didn’t have a remote and it through persistence found out it did, we have an issue with trust with that dealership. We’ll put a question mark in front of anything they say from now on. Isn’t this the way it is in relationships? It’s like Steven Covey’s concept of the emotional bank account in “The Seven Habits of Highly Effective People.” Good deeds, kind words and following through on your agreements build deposits in your emotional bank account with another person. False statements, not following through on agreements create withdrawals in an emotional bank account in a relationship. The idea is that you must make many more deposits than withdrawals to keep the trust level high between the two of you.
Being impeccable with your word means following through on what you say you’re going to do. Karen Sim asked Pete to use the weed eater the clear the weeds along the driveway this weekend and Pete said he would. Although this is a small matter, if he hadn’t followed through and whacked the weeds when he said he would, some of the trust between them would be eroded. When we don’t follow through on what we say we’re going to do on the small stuff, doubt creeps in about follow through on the “big stuff” too.
Being impeccable also means being conscious of what you say and the intention behind it. Have you ever said something that you really didn’t mean? As soon as it left your mouth, you wished you could capture it and destroy it before anyone could hear it? The challenge of being impeccable is to be aware of how you are feeling, watch what triggers you, and stay in the present moment without reacting from past unhealthy patterns and old family tapes.
This week as you go through your day, be very aware of what comes out of your mouth. Be very conscious of what promises you make and what you say to someone when you are emotionally triggered. Make a new agreement, as Don Miguel Ruiz says, to be impeccable with your word.
Indeed, life is short. Don’t let another day go by without taking a chance on happiness. You will never know until you try, so remember to make a move today. It can change or affect the rest of your life, therefore, at the very least, you can try to come out something for your ex love partner during your weekend plans. With a little practice, perseverance and patience, I believe that your relationship could be enhanced with the tips that I have shared earlier. If you have faced any problems with your loved ones, do not hesitate to visit this piece of article again.
I really have a strong belief that if you can understand what I have explained and applied what you have learnt from this piece of article, your problems can be eventually solved and your making up relationship can become more stable and stronger. I wish all the best for your making up relationship with your partner. Do always remember to spread word of mouth to your fellow friends for supporting the decision of having making up than breaking up.
Should I get back together with my ex?
Watch a video that shows you exactly what you must NEVER do, what you should do to get your ex back and why at http://www.squidoo.com/how_can_i_retrieve_my_ex_lover_back
You will also learn how to reverse the situation if you have already done those things that should NEVER be done.
Emelda Blumstein
Kelly Liyakasa asked:
For many of us, comprehending our family’s rich and diverse history may not be the easiest task at hand. Many extended families are marked by numerous divorces and separations, the conjoining of several lineages and even adoption. While figuring out one’s family tree may look intimidating, genealogy services are a reputable source in untangling even the most complex family background.
A genealogy service allows inquisitive individuals to enter their family names and scour through results in the family tree database. While every service is unique in its search mechanisms, one popular genealogy service reported by 6StarReviews.com is Ancestry.com. Ancestry gives users access to fun facts like the meaning of surnames and international record collections for paying members.
Say you’re a “Smith” and you feel like the quest for your true family background may be worthless because of the prevalence of your last name. One genealogy service, One Great Family, allows members to utilize special family tree software and link their lineage with global ancestry links. That way, you’ll be able to browse through existing records and have your family tree updated automatically for you.
There is no feeling quite like knowing where you came from and discovering a hidden family secret, such that you’re related to Abraham Lincoln or Marilyn Monroe somewhere down the line. While relying on Uncle Barry’s word that you’re delineated from royalty may be trustful on your part, a genealogy and family tree service can truly divide fact from fiction.
Lon Ko
For many of us, comprehending our family’s rich and diverse history may not be the easiest task at hand. Many extended families are marked by numerous divorces and separations, the conjoining of several lineages and even adoption. While figuring out one’s family tree may look intimidating, genealogy services are a reputable source in untangling even the most complex family background.
A genealogy service allows inquisitive individuals to enter their family names and scour through results in the family tree database. While every service is unique in its search mechanisms, one popular genealogy service reported by 6StarReviews.com is Ancestry.com. Ancestry gives users access to fun facts like the meaning of surnames and international record collections for paying members.
Say you’re a “Smith” and you feel like the quest for your true family background may be worthless because of the prevalence of your last name. One genealogy service, One Great Family, allows members to utilize special family tree software and link their lineage with global ancestry links. That way, you’ll be able to browse through existing records and have your family tree updated automatically for you.
There is no feeling quite like knowing where you came from and discovering a hidden family secret, such that you’re related to Abraham Lincoln or Marilyn Monroe somewhere down the line. While relying on Uncle Barry’s word that you’re delineated from royalty may be trustful on your part, a genealogy and family tree service can truly divide fact from fiction.
Lon Ko
Ramapati Singhania asked:
An asset protection trust is an arrangement for the holding and administration of property under which property or legal rights are vested by the owner of the property (the Settlor) in a person or persons (the Trustees).
* The Trustees then hold the property for or on behalf of other persons (the Beneficiaries).
* It is essential that the transfer is gratuitous otherwise the transaction takes on the characteristics of some other legal entity.
* A trust may therefore be defined as an equitable obligation which binds the trustees to hold and deal with the trust assets for the benefit of the beneficiaries in accordance with the terms of the trust.
* A trustee administers the asset trusts assets and distributes them to the beneficiaries in accordance with the terms of the trust deed and the proper law of the trust.
* The flexibility and protection afforded by trust arrangements are such that they have become an important part of long term wealth management.
Through the use of asset protection trusts it is often possible for family assets to be preserved over succeeding generations substantially free from:
* taxation,
* probate requirements,
* succession laws,
* expropriation and
* Foreign exchange controls.
There is no requirement in Mauritius to register trusts, thereby maintaining confidentiality. A corporate structure allows its shareholders to have business conducted, own assets and limit liability. The ability to manage assets through a combination of trusts and companies is proving increasingly valuable and the legislation in force in Mauritius provides an effective framework for the conduct of international fiduciary activities and providing services in that respect.
How is a asset protection trust created?
Trusts in Mauritius are governed by the Trusts Act, 2001.A asset protection trust can only be created by an instrument in writing which should state its Object, subject, intention and Duties and powers of the trustees.
* It can be formed by a resident or non-resident of Mauritius.
* There is no register of Trusts in Mauritius nor is there any disclosure of beneficial owner to any authority.
* Trust created by written documents will generally take two forms:
* Settlement:
This form of document will be entered into and signed by both the settler and the trustee and so provide clear evidence of the intentions of both parties and of the agreed obligations assumed by the trustee.
* Declaration of Trust:
This form of document is entered into and executed by the trustee only, and records that the trustee has received certain property, specified in the document, to hold upon the terms set out in the document. It is sometimes more convenient to create a asset protection trust by declaration of trust rather than by settlement, for example, the settler may not be available to sign the document, when it is prepared.
Types of Trust
Most offshore asset protection trusts fall into four broad categories:
1. Private: including discretionary, accumulation and maintenance, life interest and fixed interest trusts.
2. Corporate: including pension and employee benefit trusts.
3. Charitable: solely for the benefit of charitable organizations.
4. Purpose: trusts with no beneficiaries that are established for purposes that are certain, reasonable and certain.
Larisa Lofton
An asset protection trust is an arrangement for the holding and administration of property under which property or legal rights are vested by the owner of the property (the Settlor) in a person or persons (the Trustees).
* The Trustees then hold the property for or on behalf of other persons (the Beneficiaries).
* It is essential that the transfer is gratuitous otherwise the transaction takes on the characteristics of some other legal entity.
* A trust may therefore be defined as an equitable obligation which binds the trustees to hold and deal with the trust assets for the benefit of the beneficiaries in accordance with the terms of the trust.
* A trustee administers the asset trusts assets and distributes them to the beneficiaries in accordance with the terms of the trust deed and the proper law of the trust.
* The flexibility and protection afforded by trust arrangements are such that they have become an important part of long term wealth management.
Through the use of asset protection trusts it is often possible for family assets to be preserved over succeeding generations substantially free from:
* taxation,
* probate requirements,
* succession laws,
* expropriation and
* Foreign exchange controls.
There is no requirement in Mauritius to register trusts, thereby maintaining confidentiality. A corporate structure allows its shareholders to have business conducted, own assets and limit liability. The ability to manage assets through a combination of trusts and companies is proving increasingly valuable and the legislation in force in Mauritius provides an effective framework for the conduct of international fiduciary activities and providing services in that respect.
How is a asset protection trust created?
Trusts in Mauritius are governed by the Trusts Act, 2001.A asset protection trust can only be created by an instrument in writing which should state its Object, subject, intention and Duties and powers of the trustees.
* It can be formed by a resident or non-resident of Mauritius.
* There is no register of Trusts in Mauritius nor is there any disclosure of beneficial owner to any authority.
* Trust created by written documents will generally take two forms:
* Settlement:
This form of document will be entered into and signed by both the settler and the trustee and so provide clear evidence of the intentions of both parties and of the agreed obligations assumed by the trustee.
* Declaration of Trust:
This form of document is entered into and executed by the trustee only, and records that the trustee has received certain property, specified in the document, to hold upon the terms set out in the document. It is sometimes more convenient to create a asset protection trust by declaration of trust rather than by settlement, for example, the settler may not be available to sign the document, when it is prepared.
Types of Trust
Most offshore asset protection trusts fall into four broad categories:
1. Private: including discretionary, accumulation and maintenance, life interest and fixed interest trusts.
2. Corporate: including pension and employee benefit trusts.
3. Charitable: solely for the benefit of charitable organizations.
4. Purpose: trusts with no beneficiaries that are established for purposes that are certain, reasonable and certain.
Larisa Lofton
Cheryl Johnson asked:
Everybody loves a nice, relaxing, vacation. The family vacation gives us a chance to focus on family and spend some quality time together. Unfortunately, sometimes the family vacation can be costly. Especially, if you have a large family.
Including a vacation in your plans can be a challenge on a tight budget. For those of you who want to get in that family quality time, yet don’t have the finances for an extravagant vacation, here are some frugal family vacation tips. Since the goal here is to get the most fun for your money, let’s talk about some frugal and low cost vacation ideas and tips that could be right for your family.
1. Camping: A great low cost option for families that enjoy the outdoors. Don’t worry, you don’t have to sleep in a tent. There are lots of state parks that rent cabins for a very reasonable fee. As an added bonus, when you are registered at a state park, you gain free entrance into all state parks.
2. Beach It: If you want to beach it, be sure to check out all your options for lodging. Sometimes a large family can do better by renting a condo or home for the week rather than staying at a hotel. Remember, you can save a tremendous amount of money if you can prepare your own meals while on vacation. A good portion of a families vacation budget can be literally “eaten up”! Even a little kitchenette in a suite can save you big bucks. If you’re campers, you can almost always find a campground near popular beach areas and get maximum savings on lodging.
3. Low Cost Lodging: Don’t forget your best resources, friends and family. Ask around to see if anyone has visited an area you plan to go. You may get lucky and have a “friend that has a friend” who maybe has a vacation spot they wouldn’t mind renting to you for a lesser fee. Sometimes people won’t rent out their vacation spots for various reasons, but don’t mind doing so if the tenant is a trusted acquaintance of a friend or family member.
4. Visit Friends and Family: Plan to visit friends and family that live far away, or even those that live close, and you rarely find the time to visit. In today’s fast paced society it’s not unusual for family and friends to lose touch. You’ll save money and get to catch up on what’s happening with friends and/or family that you haven’t visited recently. This will be fun for everyone and reinforce family togetherness.
Whatever you decide to do, if you’re traveling a great distance be sure to check all your travel options. With today’s soaring gas prices it’s not unlikely that you may be able to get there faster, and cheaper, in the air. Hey, maybe there’s a conspiracy here?
If all this just doesn’t fall into your category of “fun”, and you just have to have that exotic resort vacation, then at least be sensible about it. There are many great deals on vacation packages and off season rentals. And, oodles of travel agencies just waiting to tell you about them.
This is one area where do-it-yourself isn’t always the most practical advice. Travel agencies are privy to a lot of travel information, especially seasonal discounts, that you and I don’t have knowledge of. Do Your Research at least for goodness sake. You won’t be kicking yourself later when you come across that great deal you missed out on!
Check out your local travel agencies, as well as some of the many online agencies. Don’t forget, if you’re an AAA member you’re eligible for travel discounts. Before finalizing any plans, be sure to know your rights. What happens if you have to cancel? What is the deadline to cancel? Will you loose your deposit or is it refundable? Know your options.
Remember, the most important thing about family vacations is to spend quality time together. Have fun, and have a safe and happy frugal family vacation!
Casimira Viator
Everybody loves a nice, relaxing, vacation. The family vacation gives us a chance to focus on family and spend some quality time together. Unfortunately, sometimes the family vacation can be costly. Especially, if you have a large family.
Including a vacation in your plans can be a challenge on a tight budget. For those of you who want to get in that family quality time, yet don’t have the finances for an extravagant vacation, here are some frugal family vacation tips. Since the goal here is to get the most fun for your money, let’s talk about some frugal and low cost vacation ideas and tips that could be right for your family.
1. Camping: A great low cost option for families that enjoy the outdoors. Don’t worry, you don’t have to sleep in a tent. There are lots of state parks that rent cabins for a very reasonable fee. As an added bonus, when you are registered at a state park, you gain free entrance into all state parks.
2. Beach It: If you want to beach it, be sure to check out all your options for lodging. Sometimes a large family can do better by renting a condo or home for the week rather than staying at a hotel. Remember, you can save a tremendous amount of money if you can prepare your own meals while on vacation. A good portion of a families vacation budget can be literally “eaten up”! Even a little kitchenette in a suite can save you big bucks. If you’re campers, you can almost always find a campground near popular beach areas and get maximum savings on lodging.
3. Low Cost Lodging: Don’t forget your best resources, friends and family. Ask around to see if anyone has visited an area you plan to go. You may get lucky and have a “friend that has a friend” who maybe has a vacation spot they wouldn’t mind renting to you for a lesser fee. Sometimes people won’t rent out their vacation spots for various reasons, but don’t mind doing so if the tenant is a trusted acquaintance of a friend or family member.
4. Visit Friends and Family: Plan to visit friends and family that live far away, or even those that live close, and you rarely find the time to visit. In today’s fast paced society it’s not unusual for family and friends to lose touch. You’ll save money and get to catch up on what’s happening with friends and/or family that you haven’t visited recently. This will be fun for everyone and reinforce family togetherness.
Whatever you decide to do, if you’re traveling a great distance be sure to check all your travel options. With today’s soaring gas prices it’s not unlikely that you may be able to get there faster, and cheaper, in the air. Hey, maybe there’s a conspiracy here?
If all this just doesn’t fall into your category of “fun”, and you just have to have that exotic resort vacation, then at least be sensible about it. There are many great deals on vacation packages and off season rentals. And, oodles of travel agencies just waiting to tell you about them.
This is one area where do-it-yourself isn’t always the most practical advice. Travel agencies are privy to a lot of travel information, especially seasonal discounts, that you and I don’t have knowledge of. Do Your Research at least for goodness sake. You won’t be kicking yourself later when you come across that great deal you missed out on!
Check out your local travel agencies, as well as some of the many online agencies. Don’t forget, if you’re an AAA member you’re eligible for travel discounts. Before finalizing any plans, be sure to know your rights. What happens if you have to cancel? What is the deadline to cancel? Will you loose your deposit or is it refundable? Know your options.
Remember, the most important thing about family vacations is to spend quality time together. Have fun, and have a safe and happy frugal family vacation!
Casimira Viator