Posted on Thu, May 20, 2010
So you're thinking of handling your own estate plan. Let's be honest, times are tough, you know you want to have an estate plan and doing it yourself would save you a great deal of money. I can't deny that purchasing a kit or book will most likely be cheaper than hiring an attorney to do the work.The long-term cost, however could be higher than you ever thought. Now before I get into my rebuttals, allow me to remind you why you want an estate plan to begin with.
1. You want to avoid probate court.
2. You want to save your heirs from as much heartache and confusion as possible when you pass.
3. You want to pass as much of your hard earned savings onto family, charities and heirs as possible.
4. You want to make sure you are properly taken care of while still living.
Whether you decided to do an estate plan for any one or a combination of these reasons, your objective will be in jeopardy if your estate plan is done wrong! I will save you the dramatic "Would you perform surgery on yourself" rhetoric and simply state that paying a little extra now will save you a great deal in the long run. Here's why:
Though guidelines for estate planning are becoming more uniform, there still are differences from state to state. So beware of that estate planning program you picked up on line, particularly if it was written based on laws of another state.
Products themselves warn of issues. One of the most popular estate planning software kits you can buy actually include this warning: NOTHING HEREIN IS OR SHOULD BE DEEMED TO BE LEGAL ADVICE, TAX ADVICE, ESTATE PLANNING ADVICE, OR ADVICE OF ANY TYPE REQUIRING LICENSING OR AUTHORIZATION UNDER ANY STATE OR FEDERAL LAW OR REGULATION. Essentially stating that this program does not replace your attorney or estate planning professional.
Laws change. Albeit they don't change often, reviewing estate planning laws is important to make sure your plan is current. Unless you plan on subscribing to your state's bar journal, find a company that not only establishes your estate, but does reviews every one to two years.
You know you want to protect your family, make sure you do it the right way. Working with a professional will not only save you time and will eliminate the difficult task of researching proper estate planning methods, it will give you peace of mind knowing that your estate and family are protected.
Posted on Wed, Mar 31, 2010
It's been 5 years since the end of the epic legal battle involving Terri Schiavo and the dilemma her family faced. I can't recall any instance receiving more media coverage in the last 20 years with exception of the OJ Simpson trial. I recall hearing about the progress of the lawsuits daily. Fortunately we all learned our lessons from this, ran out and establish the legal documents that would prevent our families going through the same thing, right?
While you recall to yourself why you didn't get anything in order, let me remind you of the Schiavo's case. In 1990 Terri Schiavo collapsed in her Florida home, suffering irreversible brain damage. The doctors that studied her stated there was nothing they could do to save her, so she was placed on life support. The legal battles started when her husband tried to remove her from life support stating that his wife would not have wanted to live this way, her parents disagreed. After a multitude of lawsuits, lawyers, judges, the President of the United States, the Supreme Court and 15 years later, Terri's feeding tube was removed.
The concerning part is, according to this article from the Boston Globe, few people have taken the initiative to make their end-of-life wishes known. At EPLS we handle this through a living will, it's included in any estate plan you do with us. We also include your Powers of Attorney for Medical and Financial, as well as your HIPPA forms. Please don't make the same mistake the Schivos made. Make it known what your wishes are and then record them. If you have any questions on Living Wills, estate plans or end-of-life wishes, let us know.
Posted on Fri, Feb 26, 2010
As I sit here in my office watching another 1-2 inches of snow fall on the waist-high blanket we already have, I started thinking about a trip to Punxsutawney, Penn. I would like to ask that little groundhog "Phil" what it is he has against spring. Then I'm reminded that this is Michigan, and "if you wait another 15 minutes the weather will change". This is of little comfort when I start looking at our roads. With this economy we all know there is a little less money for plowing, so we all have to get a little better at driving in "unideal" conditions. Click here to watch a great video from our friends at the Hartford on "Safe Winter Driving". So drive safe and if it helps - the Tigers open Spring training March 2nd!
Posted on Thu, Jan 14, 2010
Choosing the right attorney is as important as choosing the right doctor. Not only do you want someone you are comfortable with; you also need someone that knows what they are doing. The main difference between doctors and attorneys is the fact that doctors receive additional training to "specialize" in different fields of medicine. For example, you wouldn't go to a Dermatogolist to have your heart checked out. In law, it's not that way. There are no specialties outside of tax and patent law. So any attorney that graduates from law school and passes the state bar can say they are an estate planning, divorce or criminal attorney, even though they have little or no experience in that field. So when you are looking for an estate planning attorney, look for one with experience. Make sure you ask these questions:
1. How long have you been practicing in the field of estate planning?
2. Roughly how many estate plans do you do a year?
3. How do you keep up with changes in estate planning law?
4. Do you handle any other law outside of estate planning?
You will make few decision in your life that are more important than how you handle your estate. Make sure you have the right firm on your side.
Posted on Tue, Jan 12, 2010
Putting together an estate plan for married couples can be tricky business, let alone same-sex couples. As part of a same-sex couple, you likely don't automatically inherit your partner's assets.
It can also be difficult for your family. You may or may not want them to receive some of your inheritance, even if you haven't seen them in years. But without a proper estate plan, they may get priority over your lifetime partner.
The rights of life partners and heterosexual couples differ in several ways and Estate Planning is one way to insure that life partners remain an integral part of each others decision making and asset division processes.
Additionally, life partners are not recognized as "family" for purposes of state law. Without the proper Powers of Attorney in place a life partner may be excluded from making financial or medical decisions for an ill or incapacitated partner.
Proper estate planning will protect those who are left behind after the death of a life partner and will insure that the wishes of a decedent are honored, and that his or her life partner is legally protected.
Contact an attorney whose focus is in estate planning and is knowledgeable about the LGBT community. This will help you put a plan in place to protect you and your partner.
Posted on Mon, Dec 28, 2009
Due to the strains of the economy, housing and job markets, many of my clients have been asking about loan modifications. President Obama created a plan to make it easier for current home owners to "amend" their current mortgages with their mortgage holder. This allowed some borrowers to decrease their interest, payments or time left on their mortgage with supposedly little damage. However, the effect of the modification didn't take into account what would happen to an already shaky credit score. Here is a great article from CNN-Money that will give you something to think about if you are planning on attempting to modify your loan in the future.
Mortgage Rescue: Credit Score Killer
Despite its potentially negative effects, sometime this is the best option when you are trying to save your house and keep your estate.
Posted on Fri, Dec 11, 2009
We understand that the people that will be doing research for estate planning on the internet are usually looking for a loved one, who is a little less internet savvy. So in additional to our article on "How To Talk To Your Parents About Their Estate Plan", here is an article we found at caring.com on what types of questions you should be asking your parents. We found these questions to be quite pertinent and relative.
Posted on Mon, Dec 07, 2009
Here is a great article from the Minnesota Post in regards to the extension of the current estate tax limits. Essentially what is happening is that the current estate tax rate will increase to 55%, up from 45% currently, in 2011 unless the Senate votes on a reform prior to December 31st of this year.
Do you need to worry? Most of us don't, now, but you may in the future. The estate tax currently only comes into play with estates over $3.5 million for individuals or $7 million for couples. According to the article this only affects 1 in 500 estates. However, the estate tax is scheduled to decrease to any estate over $1 million by 2011! When you factor in your home value, investments and personal belongings, this could affect many of us.
The government is always making changes to how wealth is transferred in this country. Keeping informed is your best line of defense. Let us know if you have any other questions or if this increase will affect your estate.
View Article
Posted on Wed, Dec 02, 2009
I have been seeing a lot of questions on blogs recently about what a special-needs or supplemental-needs trust is.
If your child (or other beneficiary) were to become legally disabled and started getting government payments before he got his inheritance, all government payments stop until all of the inheritance is used up for his care.
Our estate plan corrects this problem by inserting a SUPPLEMENTAL-NEEDS TRUST for your disabled beneficiary into your trust. This type of trust allows him to continue getting government benefits. His inheritance money then can be used by the successor trustee to pay for things that the government won't provide such as clothing, a car, etc. This means that your legacy is being used to improve your beneficiary's life and not just delaying government benefits.
Posted on Tue, Nov 17, 2009
Pet Trusts, once regarded as an eccentric whim for the very rich, have moved into the mainstream. Given the bond that pet owners feel toward their pets, this type of estate planning is an invaluable way to provide your pets with protection after your demise.
The brutal truth is that if you are incapacitated or die your beloved pet is more likely to end up in a shelter rather than with a family or a neighbor. A Pet Trust is a way to specify a caretaker for your domestic or pet animal and Michigan Statute actually provides for the care of such animals. A Pet Trust is a specific legal arrangement that provides for the care of domestic or pet animals in the event that you become incapacitated or should you pass away.
A Pet Trust allows you to designate a care-taker/beneficiary who will provide care, shelter, and comfort for your domestic or pet animal, using the funds you designate from your estate. This person or institution could be a family member, neighbor, or even the Humane Society. Traditionally, any assets remaining after the demise of a domestic animal or pet are left to the caregiver or designated charitable beneficiary.
When you consider that some types of parrots can live to be 80 years old, this arrangement makes a lot of sense, and can provide you with peace of mind knowing your pet will be cared for.