Crummy is defined as dirty, run-down, tacky, worthless or just plain lousy. On the other hand, if you’re a “Crummey” advisor, that’s a good thing – especially if you’re making “Crummey” recommendations to your high-net-worth (HNW) clients. Let me explain what I mean about making “Crummey” recommendations.
If you didn’t get a chance to read my first article on this subject, Your Clients and Their Children: The Problems with Joint Bank Accounts, it may be helpful to review it as a means of providing context for this article. As noted in that first posting, if a client couple wishes to make their bank accounts into joint accounts with their children, there are various resolutions for handling that wish efficiently and in less risky ways.
Do you get the recurring question from clients that I do, from time to time, about bank accounts? I’m referring to the issue where an elderly mother or father wants to add their child’s name to one or more of their bank accounts. In simple terms, the logic makes sense, as most parents want to assure that their bills, mortgages, insurances or even funerals get paid for should something happen to them. Yet most elderly clients and children don’t realize the risk that this small transaction creates.
Last Sunday I asked my 91-year-old mother - who still drives her own car - to have lunch with me and my wife after church. As always, I paid for the meal, but not without my mother arguing that she can pay for her own lunch. Nonetheless, I always ignore her and pay anyway. Afterwards, my wife wanted to stop at Walmart for a few minutes, and from experience I knew how long “a few minutes” meant. So I decided to drive my mother home and let my wife pick me up when she finished shopping.
Read Andy's article published by Advisor One discussing "Why You Still Shouldn't Gamble on Gift and Estate Taxes".
National Advisors Trust Company recently received authority from the Office of Thrift Supervision to offer estate administration and guardianship services in addition to the trustee, employee benefit, IRA, and custodian services that National Advisors Trust has offered since its original chartering. The new estate administration and guardianship services are now available to clients of advisory firms that are National Advisors Trust shareholders.
Watch this Video regarding Estate Planning - 2011 and 2012 Present Window of Opportunity - presented by Forefield.
Watch a video on Planning for Estate Taxes in 2011 and 2012 - presented by Forefield.