Estate Planning: Have a Will?

A will is a legal document that transfers what you own to your beneficiaries upon your death. It also names an executor to carry out the terms of your will and a guardian for your minor children, if you have any.

Your signature and those of two witnesses make your will authentic. Witnesses don't have to know what the will says, but they must watch you sign it and you must watch them witness it.

Hand-written wills -- called holographs -- are legal in about half the states, but most wills are typed and follow a standard format.

What Should Be In Your Will?
Your will should contain several key points in order to be valid. The following list is a start. Check with a local estate attorney for a more comprehensive list:

You must first include your name and address.
Next, you must include a statement that you intend the document to serve as your will.
The names of the people and organizations -- your beneficiaries -- who will share in your estate.
The amounts of your estate to go to each beneficiary (usually in percentages rather than dollar amounts.)
Name an executor to oversee the disposition of your estate and trustee(s) to manage any trust(s) you establish.
Name alternates to provide both executor responsibilities and trustee(s).
Name a guardian to take responsibility for your minor children and possibly a trustee to manage the children's assets in cooperation with the guardian.
Designate which assets should be used to pay estate taxes, probate fees and final expenses.

Who Needs a Will?
You should make a will as soon as you have any real assets, or get married, and certainly by the time you have children.

If You Don't Have a Will
Without a will, you die intestate. The law of your state then determines what happens to your estate and your minor children. This process, called administration, is governed by the probate court and is notoriously slow, often expensive and subject to some surprising state laws.

What Is A Living Will?
A living will expresses your wishes about being kept alive if you're terminally ill or seriously injured.

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Seth G. Horner
Insurance Agent
Business-Auto-Home-Health-Life
2336 B Kenmore Ave.
Charlotte, NC 28202
ph (704) 712-2586
fax(704) 973-0632
http://www.sethhorner.com

Got Travelers Insurance?

Travelers and expatriates need more than insurance protection - they need knowledge and information to keep them healthy and safe. With the purchase of any of HTH's Insurance products, you receive access to HTH's Global Health and Safety services.

1. Access to the HTH Physician Community, available in more than 180 countries. Use the HTH website to find a pre-qualified, English-speaking doctor in your destination -- even include his or her office address and phone number with your important travel documents. Global Student customers also have access to more than 700,000 doctors and 4,400 hospitals in the U.S. through the Aetna Passport Network: one of the largest PPO networks in the U.S.
2. Access to CityHealth Profiles, which contain critical healthcare information, including vaccination requirements and emergency listings, for more than 590 destinations worldwide.
3. Access to Security Profiles, which include up-to-date information about terrorism, kidnapping and political stability.
4. Access to the HTH Drug Translation Guide. Medications are given different brand names around the world - our guide will help you find the prescription or over-the-counter medication you need.
5. Access to the HTH Medical Phrase and Terms Translation Guides. If you require medical care while traveling, HTH's medical phrases/terms translation tools will help you communicate clearly with the doctor, nurse or pharmacist.

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Seth G. Horner
Insurance Agent
Business-Auto-Home-Health-Life
2336 B Kenmore Ave.
Charlotte, NC 28202
ph (704) 712-2586
fax(704) 973-0632
http://www.sethhorner.com

Who is the Business?

Loss Of A Key Employee

Business owners accept without question the wisdom of insuring the firm against the loss of its property values. We take care to insure the physical assets against fire, tornados and other disasters. Yet, protection from the loss a key executive may be far more important.

First, the probability of losing a key employee is far greater than a fire loss. It has been estimated that the chances of death of a key executive is 14 times greater at age 45 than a loss due to fire. It increases to 17 times at age 50, and to 23 times at age 55. Further, about one out of every three individuals dies in the working period of life with a consequent loss to his/her business.

Second, the loss due to a fire is temporary. Plants and factories can be rebuilt. Inventory can be replaced. The new building is likely to be more useful and valuable than the old. On the other hand, a new hire may need several months or even years to become as productive as her/his predecessor. The deceased employee may be impossible to replace.

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Seth G. Horner
Insurance Agent
Business-Auto-Home-Health-Life
2336 B Kenmore Ave.
Charlotte, NC 28202
ph (704) 712-2586
fax(704) 973-0632
http://www.sethhorner.com

What If My Business Partner Dies?

The death of a major shareholder in a closely-held corporation can seriously interrupt continuity and profitability of the business. Surviving shareholders must struggle with how to continue the company as a profitable business with the loss of a key player. Heirs must concern themselves with how to replace the income that the shareholder had earned and how to extract their inherited portion of the company value.

To minimize the areas of conflict and to realize a smooth transition, company owners should enter into an agreement while the parties are still living. This is called a buy-sell agreement. Stock purchase plans are generally arrangements through which shareholders agree to sell their stock interests in the event of specific triggering events such as death, disability, or retirement.

Stock purchase plans are generally classified into three categories: stock redemption plans, cross purchase plans, and hybrid plans.

Plan Types
Under a stock redemption plan, the corporation agrees to purchase all or part of the stock interest of a shareholder. There are three approaches to stock redemptions - full redemptions, partial redemptions and Section 303 redemptions.

In a cross purchase agreement, the remaining shareholders buy the stock interest of a single shareholder. They can either distribute the shares proportionally to what they had before the triggering event occurred or non-proportionally according to what is outlined in the buy-sell agreement.

A hybrid plan, or wait-and-see approach, gives the corporation the first chance to buy. If the corporation does not buy in within a specified time frame (90 days say), the other stockholders will have the option to buy. If that option is not exercised then the corporation must buy.

Factors to Consider
Many factors need to be considered when determining the best type of stock purchase plan to implement, cost factors, psychological factors, ease of administration, tax implications, and transfer for value rules to name a few. You should seek the advice of financial and legal counsel to help implement your plan.

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Seth G. Horner
Insurance Agent
Business-Auto-Home-Health-Life
2336 B Kenmore Ave.
Charlotte, NC 28202
ph (704) 712-2586
fax(704) 973-0632
http://www.sethhorner.com

Creating a College Funding Strategy

Saving for college isn't easy, but the earlier you start the better off you'll be. For example if you save $60 a month for 17 years earning 8% per year, you will have over $25,000 by the time college begins!

There are several savings and investment strategies that can help you accrue money for college.

Planning Ideas,
Below are some savings ideas that my help you better prepare for the task of funding your children's college educations.
Assess your needs. In order to know how much to save, you need to estimate the future cost of tuition at public and private institutions. With education cost rising an average of over 8% a year for four-year institutions you must save with inflation in mind.
Save early and often. The sooner you begin to set aside funds for college, the less you will have to save. Allow your investments to grow along with your child.
Set up a systematic savings plan. Try to save monthly or quarterly, just as you would if you were paying off a car or a mortgage.
Keep a separate college account. The most popular are custodial accounts. These accounts ease the tax burden by allowing parents to shift some of their assets to the child at the child's lower tax rate.
Involve the family. Children are more aware of family finances and accept responsibility when they are involved. It also becomes easier for you if the child is able to contribute to the fund.


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Seth G. Horner
Insurance Agent
Business-Auto-Home-Health-Life
2336 B Kenmore Ave.
Charlotte, NC 28202
ph (704) 712-2586
fax(704) 973-0632
http://www.sethhorner.com

Estate Planning?

You may recall that during the final weeks of his life, former President Richard Nixon refused "heroic measures" and received only palliative (comfort-easing) care at his home. Similarly, former First Lady Jacqueline Kennedy Onassis refused life-prolonging medical intervention before her death from non-Hodgkins lymphoma. Former President Nixon and Mrs. Onassis both retained control over their final medical care through use of a living will and a health care power of attorney.

Perhaps you've reflected on your own wishes if you were to face a similar situation. Although no one likes to imagine the possibility of being in such a helpless state, the statistical possibility of such an event remains fairly high. This is why it's wise to ensure that your wishes will be respected if you become incapacitated.

Just as a will becomes the governing entity for your estate after you die, a living will will make your wishes clear and legally binding in the event of a devastating illness or injury. A living will is often referred to as a health care power of attorney. In it you state how you should be treated in the event of a terminal disease, severe illness, or tragic accident. By giving such directions when you are healthy, your relatives won't have to make difficult decisions on your behalf, and you'll receive the type of care you desire.

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Seth G. Horner
Insurance Agent
Business-Auto-Home-Health-Life
2336 B Kenmore Ave.
Charlotte, NC 28202
ph (704) 712-2586
fax(704) 973-0632
http://www.sethhorner.com

Do Something, Or Do Nothing...Which Costs More?

No one knew life insurance like Ben Feldman. Over the years, he helped many people insure that their families would be taken care of for years to come. In the words of Feldman, "Doing something will cost you something, doing nothing will cost you something, but doing nothing usually costs you a whole lot more!". What have you done to protect your family? Is it really enough? What would happen if you died last night? Would your spouse keep your home? Would your son or daughter go to college? Would your estate tax eat away at your family's money until there was nothing left?
Do not take chances when it comes to your family. Be sure that your family will live comfortably without you! To get more information, visit my website below.

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Seth G. Horner
Insurance Agent
Business-Auto-Home-Health-Life
2336 B Kenmore Ave.
Charlotte, NC 28202
ph (704) 712-2586
fax(704) 973-0632
http://www.sethhorner.com