Every good will or trust will say something about paying the executor’s “final expenses,” otherwise known as funeral and/or memorial costs. As a small portion of what can sometimes be a very large and intricate document, this “final expense” clause can seem unimportant—but our firm knows better. We know just how important this pre-planning can be, and so does Sarah Arnquist, author of the article The Caregiver’s Last Expense in the New Old Age Blog.

A funeral comes at a time when the death of a loved one is recent and close, and many people are still in shock and in some cases struggling with the reality of loss. Funerals help grieving loved ones come to terms with death and say their final goodbyes… but for the person planning the funeral the experience can sometimes be a frustrating, painful, and expensive experience. Planning ahead for your own funeral—discussing it with your loved ones and even including your wishes in your estate plan—can remove this burden from their shoulders when the time comes.

Although pre-planning a funeral is essential, Arnquist writes that pre-paying for a funeral can actually be detrimental. According to Josh Slocum of the Funeral Consumers Alliance, there are just too many things that can go wrong, he says, and “only a few states have adequate legal protections for prepaid funeral customers.” Pre-paying may be a no-no, but setting aside funds—in an account, CDs, or a specially designated insurance policy—is always a good idea.

And when considering the final expenses of yourself or your loved one, “Judy in Oakland” (who is not quoted in the article itself, but who left an eloquent comment in the comments section) reminds us that funeral and burial are not the only expenses that need to be considered. “Disposing of the deceased’s property is an extremely daunting, labor-intensive, and complicated matter, even without real estate… disposal of furniture and goods is becoming a bigger and bigger problem — so for other caregivers out there — brace yourselves.”

www.blogprofs.com

Anyone who has been around long enough knows that accidents happen, Murphy’s Law does exist, and things have a tendency to go wrong occasionally; computers crash, fires happen, pipes break and flood the first floor of your home. And sometimes things just get lost during the passage of time. This can even happen to something as important as your estate planning documents. This is why it’s important to know where and how to store your estate planning documents once you’ve executed them.

1. Have copies. No matter where you decide to keep your signed originals, photocopies should be made and kept somewhere they can be found easily by your agents should something happen to you. A library bookshelf, or office closet is an unobtrusive but accessible place to store copies.
2. Keep your original documents someplace safe from thievery and natural disasters. Originals can be kept in a fire-safe in your home if you have one, or in a safe deposit box at the venue of your choice. If you do decide to keep the documents in a safe deposit box, be sure to put the box in the name of the trust rather than your own name. This allows your trustee to access the box (and the documents inside) when you pass away.
3. Make sure your agents and fiduciaries have the documents they will need to do their job should anything happen to you. Your will or trust should stay in your possession, along with your Healthcare Directive and various other documents, but your healthcare agent will need a copy of your HIPAA authorization, your nominated guardians should have the original document giving them permission to make health care decisions for your minor child if you are unavailable.

Every estate plan will vary slightly, so ask your attorney which documents to keep and which to send to your fiduciaries after you’ve signed. And if you can, get you documents in .pdf format on a disk or flash drive. The electronic copies are just that—copies—and won’t hold up in court; but it’s one more level of protection should disaster strike.

www.blogprofs.com

On the Fourth of July we look to our nation’s history and appreciate the people and events of the past that have brought us to where we are today. In that spirit of reflection, we offer on our blog this holiday weekend some of our nation’s history as relates to estate planning: the last wills and testaments of some of our more famous presidents. It is interesting to see not only a glimpse into the minds of some of our beloved historical figures, but also how this most important of legal documents has changed throughout the years.

Below are links to the wills of:

• George Washington

• Thomas Jefferson

• John F. Kennedy

• Richard Nixon

Not all of our admired thinkers had the time (or in some cases the forethought) to write a will. Among the presidents who died without either a valid will or no will at all are Abraham Lincoln, Andrew Johnson, Ulysses S. Grant, and James A. Garfield.

Our firm wishes you a happy and safe Fourth of July weekend!

www.blogprofs.com

The past week has been filled with media speculation about Michael Jackson and his will: Did he have one and what might be in it? Well the waiting is finally over… kind of. It turns out Michael Jackson did create a will, which was submitted to the California probate courts earlier this week. The will (which can be viewed here) is five pages long, and because it pours “my entire estate” into the Michael Jackson Family Trust, the will itself reveals very little about the specifics Jackson’s estate or his instructions regarding the administration of it.

A will, although it can remain private during your life, becomes a matter of public record once it is submitted to the probate courts after your death. In fact, the last wills and testaments of many public figures can be found online if you’re curious. But a trust is a private document, and remains private even after your death.

Jackson’s will does reveal a few details, though, namely who he chose as guardian for his children. In paragraph 8 of his will, on page 4, just above his signature, Jackson states:

“If any of my children are minors at the time of my death, I nominate my mother, KATHERINE JACKSON as guardian of the persons and estates of such minor children. If KATHERINE JACKSON fails to survive me, or is unable or unwilling to act as guardian, I nominate DIANA ROSS as guardian of the persons and estates of such minor children.”

Whether Jackson’s wishes for guardianship will be followed remains to be seen. As Jackson’s ex-wife and mother of his two oldest children, Deborah Rowe would normally automatically be awarded custody. However, there are still too many unanswered questions about the status of Rowe’s parental rights—and her desire to assert those rights—to make any claims for certain.

The one thing that is certain, however, is that whatever odd and inexplicable things Jackson may have done during his life; he seems to have done what he should to provide for his family’s financial needs and their privacy after his death.

Have you done the same?

www.blogprofs.com

Many people come into our offices thinking that the estate plan we help them create will be quick, easy, and above all the end of the line. They hope that once this item is crossed off the to-do list they can breathe a sigh of relief and never think about it again. For some people this is exactly what happens, but others find that the creation of an estate plan serves as jumping off point for other important planning strategies: Retirement planning, investment planning, Medicaid planning and long-term care planning are all important issues every family will have to eventually consider.

Most of these issues are at least somewhat familiar, but long-term care still presents a number of questions for many people: What exactly is it? Will I need it? Who will provide it? And how will I pay for it? In an effort to shine some light on the still murky issue, the AARP has published an article that helps answer these questions in a clear and concise manner. The article also addresses issues such as the difference between public and private services, and when you may need to utilize one or the other.

Answering the difficult questions, however, is only the first step. “Using a combination of support—family and friends, community services, private funds, and government assistance, if necessary—provides a balanced approach to getting the help you need in the setting of your choice.” Once again, having a plan is essential to ensure that you retain control over your own finances and care far into the future.

www.blogprofs.com

Michael Jackson’s death on Thursday shocked the world. As fans and mourners line up to pay their respects (and snap up Jackson music and merchandise) the question now on the minds of many is: What will happen to Michael Jackson’s estate and to his children?

It is still too early to know what legal steps Jackson may have taken to dispose of his estate and protect his three young children. But the truth is that even if Jackson does have all the requisite estate planning documents in place, execution of his wishes is not likely to be simple. According to this article in the associated press Jackson was deep in debt at the time of his death—so much so that one source wonders, “[will there be] anything left after you pay off the debts?”

But the more immediate question for many people—especially parents—is what will happen to Jackson’s children? Jackson had full custody of his three children (two by ex-wife Debbie Rowe and one by a surrogate mother, both of whom gave up their custodial rights), and although no guardianship documents have yet been revealed, according to news sources “it was Jackson’s intention for his children to pass to his mother, Katherine,” should anything ever happen to him. However, rumors that Rowe plans to battle for custody, and that the 79 year old Katherine may be in poor health, promise that this too is not likely to be a straightforward process.

It seems that the days of simple wills are a thing of the past. Even for your average Joe, blended families, shared assets, and traded debts make the execution of an estate plan more convoluted than ever. Does this mean we shouldn’t even try? Quite the contrary. It means that it’s more important than ever to document your wishes for your children, family and estate.

www.blogprofs.com

The subjects of life and death are not generally considered legal topics, but rather spiritual ones; they push us to examine the very nature of humanity and the existence (or not) of a soul, touching on our most deeply held beliefs. As a document that deals directly with these issues in the most personal manner, the Advanced Health Care Directive (also known as a Medical Power of Attorney) is not one to be taken lightly by attorney or client. Some clients come into the process strong in their beliefs and choices and knowing exactly which language to include; for others this may be the first time they have considered the subject in such a personal way, and may require more time and discussion.

The links provided below provide philosophical discussion and official views and language for most of the major religions practiced in our society. Although much information is available, the official views of some faiths were more difficult to find than others. If your religious views are not included here please contact the head of your church or your own spiritual leader for guidance.

• Mnhospice.org includes general statements about a number of issues relevant to health care directives
• Beliefnet.org provides forms and resources for numerous states and faiths in one convenient place.
• Catholic views and language
• Conservative Jewish views on health care
• Jehovah’s Witness report on rules pertaining to blood transfusions and medical treatment
• Islamic position on medical care and ethics

www.blogprofs.com

As an estate planning firm our job is to help people find the best way to leave an inheritance to their loved ones; but the inheritance you leave your children can end up making a huge statement about your core family values. When planning your estate it is important to ask not only “how?” to leave a legacy, but also “why?”

These are two questions that New York Times writer Stephen Amidon has spent a lot of time considering for his Op-Ed piece “My Children Made Me Do It”. Amidon begins pondering the “how?” by bringing up recent newsworthy subjects Bernie Madoff and Tom Daschle, reminding us that any legacy these two leave will be far more than mere money—and not necessarily beneficial. A parent will do just about anything for his children, writes Amidon, “…the one thing that is sure to get me thinking I should do something I really do not want to do — or perhaps even something I should not do — is the desire to endow my brood. All manner of behavior that would otherwise be considered contemptible seems to be justified in the name of inheritance.” But will it have been worth it?

The answer to that question depends in great part on how you answer “why?” Do you want to leave your children a Rockefeller fortune? Merely give them a little breathing room? Or perhaps you agree with Amidon that “there is often something not quite right about these fortunate sons of the baby boom…— there is something missing here, the sense of accomplishment derived from patient effort.” Thus your goal is less financial and more about values.

For most people the goal is actually far simpler, at least in the beginning—they want to have enough themselves to not be a burden on their children.

Whatever your goals, with enough thought and discussion your estate plan can reflect and achieve them. The first step is to ask yourself the important questions. “Why?” is a question for you alone, but “how?” is something our firm can help you with.

www.blogprofs.com

“We are pleased to inform you of the result of the Lottery Winners International programs… Your address attached to ticket number 2051146 won in the second category, you have therefore been approved to receive a sum of 1,000,000.00 Euro. Congratulations!!!”

You probably recognize the paragraph above from a common mail/e-mail scam letter. This letter (or something like it) makes the rounds quite frequently in an attempt to part unsuspecting people from their money. Most of us simply trash the letter and move on, but the elderly are more likely to fall victim to the scam and end up losing hundreds—sometimes thousands—of dollars before they realize they’ve been duped. A recent article in the Wall Street Journal tells the story of one of these elderly victims and his family’s attempts to save him from the con artists:

“In less than a year, this Ivy League-educated professional sent at least $23,000 to slick con artists who came to know his personal interests, as well as his bank-account, credit-card and other personal information.”

The article states that the elderly are more likely to fall victim to these scams if they live alone, are grieving for a lost spouse, or have started to lose cognitive capacity. Luckily, there are ways to protect a loved one from scammers; protections from con artists and creditors can be built into trusts and estate plans, or in extreme situations a trusted family member can be given power of attorney over bank accounts and financial matters.

If you are worried about a loved one and would like to take more immediate action, here are a few steps you can take:

• Sign up phone numbers on the FTC’s Do Not Call Registry.
• Gather scam mail in one envelope and place it in your mailbox with the note “Forward to Postal Inspector—suspected mail fraud.”
• Place a short “I’m sorry, I’m too busy to talk right now. Thank you for your call” script by the phone to help respond to telemarketing calls.

If the fraudulent activity continues you can call the AARP Foundation Fraud Fighter Call Center at 1-800-646-2283. But the best thing you can do for your loved one is to be patient, supportive, and aware.

www.blogprofs.com

Summer is a time for iced tea and watermelon, long days in the pool, vacations at the shore… and for many people summer is also a time to volunteer for your favorite charity. With school out and free time at a maximum the time is ripe to get to know your community—and contribute with a donation of time.

Whether by volunteering your time in a soup kitchen, helping out at grandma’s nursing home, teaching handicapped kids to ride horses, or donating a percentage of your income, a majority of the population chooses to give back to their community in some way. There are organizations and websites (such as www.volunteermatch.org) dedicated solely to helping us in our charitable endeavors. And the good news is that a Living Trust can help you continue giving even after your death.

With a Living Trust you as grantor can choose to give any amount of your estate to your favorite charity. Some people leave a specific dollar amount; others leave a percentage of their entire estate. And you can name your one favorite charity or divide the amount among many charities. A Living Trust gives you endless possibilities to take care of the important people—and causes—in your life.

www.blogprofs.com