November 16, 2016October 25, 2023

When a Family Member Dies

If you have never had to deal with a close family member passing away, then you might not know that there are important things that you need to do to make sure everything goes smoothly.

Dealing with the death of a close family member can be a trying experience, especially if it is the first time you are the responsible adult in charge of making sure everything is done properly. You not only have to deal with your own grief, but you also must make sure the deceased’s affairs are in order.

This is tough for even the most meticulous people as the Cape May County Herald discusses in “What to Do When a Family Member or Loved One Dies.”

Some things you need to do are just common sense. For example, you must make sure everything is safe and secure at the home, that any pets are taken care of and that any perishable food items are cleaned out of the refrigerator and pantry.

You should also take some financial steps.

It is important that you log any expenses you have while dealing with the clean up so you can be reimbursed from the estate. You should also be certain to locate any credit cards or check books to make sure they are secure. It is illegal for you or anyone else to use the cards or checks, so destroy them.

The most important thing you need to do when a loved one passes away is to call an estate planning attorney. If you know the family member used a specific estate planning attorney, then call him or her to ask about important documents. Otherwise, call an estate attorney to learn about your legal obligations.

Reference: Cape May County Herald (Oct. 31, 2016) “What to Do When a Family Member or Loved One Dies.”

November 15, 2016February 15, 2024

Convincing Parents to Create Estate Plan

Many children with aging parents know that their parents should do estate planning, but convincing their parents of that can be difficult.

Many elderly people in the U.S. believe estate planning is something only the very wealthy need. If they only have a few major assets and modest back accounts, then they believe estate planning is unnecessary for them.

Many of their adult children know better, however.

The children know estate planning is an important responsibility for everyone regardless of wealth. While those children would like to talk their parents into estate planning they may find it difficult. In the Washington Metropolitan area, estate planning is very important. Maryland estate planning is critical because Maryland has both a state estate tax and a state inheritance tax. The District of Columbia also has a state estate tax.

This topic was addressed by NJ 101.5 in “Talking to your parents about a will.”

If you find yourself having this problem with your aging parents, there are some steps you can take.

First, explain to your parents that without an estate plan their estates will have to go through probate and everything will be distributed according to state law and not your parents’ wishes. That means if they would like to leave something directly to their grandchildren, they will not be able to do so in most cases. It also means that they might be subject to Maryland or D.C estate planning axes.

You can also talk to your parents about how costly and time-consuming probate can be and how it could be a burden on the family.

If all else fails and you can afford it, you might offer to pay for your parents to visit an estate planning attorney. They do not have to commit to anything before seeing the attorney, but the attorney can discuss the benefits of estate planning with your parents and give them some options. At Profit Law Firm, we also conduct two generation family planning sessions. Contact us for a consultation with Maryland estate planning attorneys and DC estate planning attorneys.

Reference: NJ 101.5 (Nov. 1, 2016) “Talking to your parents about a will.”

November 14, 2016July 3, 2023

Using a Pour Over Will to Fund a Trust

When you get a living trust from an estate planning attorney you will likely also get a pour over will that is designed to bequeath any assets you have when you pass away into your trust. It is important not to rely on that will as the sole means of funding your trust.

Getting a trust to avoid having your estate go through probate is only effective if you fund the trust. That means your assets need to be transferred into the trust. Any assets held in the trust when you pass away will then be used and distributed according to the terms of the trust instead of having to go through probate.

At the same time, you will also likely get a pour over will.

These are simple wills that dictate that any assets you had at the time of death that are not in the trust should be placed into it via probate.

Do not let that fool you into thinking you do not need to transfer assets to the trust now and just rely on your will as the Green Bay Press-Gazette points out in “Estate Planner: Importance of funding your trust.”

While the exact rules vary from state to state, it does not take a lot of assets to require an estate to go through probate.

If all of your assets remain outside of your trust, then your executor has to probate your pour over will. By relying on the will you would have essentially defeated the purpose of getting the living trust in the first place.

If you do not know how to transfer assets into your trust or need assistance doing so, then talk to your estate planning attorney to get more information about what you need to do. We help clients, who want Maryland living trust fund at Profit Law Firm.

Reference: Green Bay Press Gazette (Oct. 31, 2016) “Estate Planner: Importance of funding your trust.”

November 11, 2016

Right-to-Live Movement

In a counter to the right-to-die movement, one woman wants to be the face of the right-to-live movement.

You may remember the case of Brittany Maynard. Two years ago the young woman became the face of the right-to-die movement.

She was terminally ill and argued that she had the right to end her own life with a doctor's assistance to put an end to her suffering.

Since then, more states have begun debating right-to-die legislation. Not everyone agrees with the idea, however.

Stephanie Parker is a young mother of four with terminal cancer who has been denied coverage for her treatments. She could end her suffering under the law in her state, but she refuses to do so.

Parker wishes for her children to learn that death is a part of life.

She wishes to be the face of the right to live movement, as FOX News reports in "Terminally ill mom denied treatment coverage — but gets suicide drug approved."

This is an important debate, but do not be confused by the media coverage.

While the media focuses on younger people who are wrestling with the decision whether to live or not with a terminal illness, this is a much bigger issue for elderly people, their doctors and their advocates.

All over the country elder law attorneys and advocates deal with these issues on a daily basis. There are strong feelings on both sides, but most advocates believe the decision should be left up to the individual person who has a terminal illness.

An elder law attorney could advise you on the laws concerning this issue in your state.

Reference: FOX News (Oct. 24, 2016) "Terminally ill mom denied treatment coverage — but gets suicide drug approved."

November 10, 2016

Executor Loses Fees

Estate executors have a right to be paid reasonable fees for their services, but if they are not careful they can miss out and not get paid for the full value of what they do.

Being the executor of an estate can be a difficult and time-consuming work, especially if the estate will have to pay estate taxes to the IRS. Because of this it is important that executors be allowed to collect reasonable fees from the estate to encourage people to take the time to serve as executors.

If an executor is not careful he or she can lose out and may not be able to collect any fees.

The Wills, Trusts & Estates Prof Blog discussed a recent example of that in "Section 6166 Lien Causes Executor to Miss Out on Fees."

In this case the executor took a Section 6166 election which allowed estate taxes to be deferred and an estate tax lien to be put on the property.

In such instances, when the property is sold, the proceeds are used to pay the estate tax.

This executor, however, had not yet collected his full fees and the property declined in value to a point below what was owed to the IRS.

The executor argued in court that his fee claim should take priority over the IRS' tax claim. However, the court ultimately disagreed and the executor will not be paid.

Executors should take notice of this case and make sure they work with estate attorneys and arrange to be paid their fees before taking Section 6166 elections.

Reference: Wills, Trusts & Estates Prof Blog (Oct. 18, 2016) "Section 6166 Lien Causes Executor to Miss Out on Fees."

November 9, 2016October 25, 2023

Putting Your Home in a Trust

If you have decided to get a trust it often makes sense to put your big assets, such as your home, in the trust.

People who get living trusts always have questions about what kind of assets they should put in their trusts, especially whether or not to put their home in it.

Recently, FOX News discussed this in “Why Should I Put My Home in a Living Trust?”

To understand the answer to the question, it is important to understand the main purpose of most living trusts.

Most people who get living trusts do so to avoid having their estate go through probate after they pass away, which is necessary if someone passes away with or without a will.

Probate can be costly and time-consuming, especially when there is a dearth of practical information left behind regarding where the legal documents and assets are.

With a living trust people can use their assets while they are alive and then after they pass away those assets can be distributed to the beneficiaries of the trust without going through probate.

The trustee, not a probate court, is responsible for making sure everything is handled appropriately. It can be faster and cheaper. The most valuable asset for many people is their home, so it only makes sense to include that in the trust rather than having it go through probate.

Of course there are many other reasons to get a trust, such as for estate tax purposes. There are also many different types of trusts that can be used for other purposes.

If you would like to know more about living trusts and what you can do with one, talk to an estate planning attorney.

Reference: FOX News (October 5, 2016) “Why Should I Put My Home in a Living Trust?“

November 8, 2016

Is Death Better than Watching the Debates?

Many Americans can probably relate to retired trucker George Norman Davis who said he would rather die than watch the Presidential debates.

George Norman Davis was a retired veteran and long-haul trucker. While not famous in life, his obituary is giving him some fame on the Internet.

It tells how, on the day of the first Presidential debate between Hillary Clinton and Donald Trump, Davis proclaimed that he would rather die than watch the debate and promptly did so.

The Daily Mail reported this story in "He said he'd rather die than watch the debates… and he kept his word! Hilarious obituary of Pennsylvania trucker who worried 'the nation is going someplace in a handbasket'."

Everyone who watched any of the debates can probably relate to the sentiment. However, while there is humor in this particular story, it is also an indication of a trend. More and more people are using public obituaries to express the kind of personality and humor of their loved one.

More and more people are also writing their own obituaries and telling the tales about themselves they want to tell.

The Internet allows people all over the world to discover these obituaries and to share those they find interesting. That does mean people who would like a more traditional or private obituary need to make their wishes clear in a will or by letting their families know in another way.

Reference: Daily Mail (Oct. 20, 2016) "He said he'd rather die than watch the debates… and he kept his word! Hilarious obituary of Pennsylvania trucker who worried 'the nation is going someplace in a handbasket'."

November 4, 2016

Adopting an Heir

To make sure that someone they love receives a portion of their estate some people decide to adopt the loved one. That is unnecessary and can create other complications.

When it comes to the law, having limited information can be dangerous.

For example, what if you know there is a default rule that says your children will inherit your estate if you do not have a living spouse. So what if you reared someone as if he or she was your own child and you would like to make sure they receive an equal share of your estate? Does that mean you should adopt that person?

That is what one person recently wrote and asked My San Antonio, as reported in "Should adoption be used to ensure an inheritance?"

In that situation adopting the person would work. However, there is a far simpler way to make sure someone receives an inheritance.

If you create an estate plan, then you can give an inheritance to anyone you want. The only restriction is that you cannot cut out your spouse or minor children completely.

On the other hand, adoption can create complications, since it severs the legal relationship between the adopted person and his or her biological family. It could potentially create other legal obligations for you and the other person.

Before adopting someone for inheritance purposes, visit an estate planning attorney.

In the end, getting a proper estate plan created may be an easier method of leaving your assets for another person than adopting them.

Reference: My San Antonio (Oct. 13, 2016) "Should adoption be used to ensure an inheritance?"

November 3, 2016

Tupac’s Pendant for Sale

If you would like to purchase a pendant that Tupac Shakur was wearing when he was shot, you can. You might get sued though.

The deceased rapper Tupac Shakur remains one of the biggest stars of the music genre years after his death. Fans still cannot get enough of his music, but his personal items have not been nearly as accessible to interested collectors.

A single piece of memorabilia has now appeared.

According to TMZ in "Tupac Bullet-Dented Pendant. . . Up For Grabs For $125K," a bullet-dented pendant the rapper was wearing when he was shot in New York City two years before his death is up for sale at a fixed price of $125,000

The pendant was allegedly given to a memorabilia dealer for the sale by an unnamed family member. It is not certain why it is a sale for a fixed price when most high value celebrity memorabilia is put up for auction.

What does seem clear is that this sale is very much a buyer beware situation.

Tupac's estate has declared that no one, including family, has been authorized to sell any merchandise. The estate has threatened to sue anyone who sells or buys the pendant.

Until more details come out, it cannot be determined whether the estate has the right to block the sale of this pendant.

If the family member who gave it to the dealer was given the pendant as part of the estate, then it is not clear what grounds the estate has to sue on. However, if the pendant was improperly acquired, then the estate has a much better case.

Reference: TMZ (Oct. 16, 2016) "Tupac Bullet-Dented Pendant. . . Up For Grabs For $125K."

Building Legacies that Last Estate Planning and Elder Law

Month: November 2016