Building Legacies that Last Estate Planning and Elder Law

Under Pressure: David Bowie’s Estate Plan

Download-1“Under Pressure.” These two words were said by the iconic David Bowie along with Queen singer, Freddie Mercury. Sadly, Bowie died back on January 20, 2016 from liver cancer at the age of 69 in Manhattan, New York City. Many celebrities, including Kanye West and Madonna, reacted with deep sorrow because they had lost the “Chameleon of Rock.” Bowie’s legacy still lives on through his children, Lexi and Duncan, along with his wife and now widow, Iman.

Bowie, initially, left the rest of his residuary estate and the remainder of Iman’s trust to Duncan and Lexi. Lexi was also subjected to her own separate trust until the age of 25. After the age of 25, she would be able to possess all the trusts assets. In the case of Iman’s trust, it did qualify for a full marital deduction, which created Bowie’s estate taxes that were to be managed by the children’s shares of the residuary estate.

Even though Bowie was iconic, his estate plan did suffer some consequences. With the $100 million value of his estate, Bowie did not create lifetime trusts that would have benefited his children. If he had created that trust, his children would have been protected from creditors for either his or her lifetime. It would have also given Bowie the power to use his full GST exemption. Since he did not achieve this step, both Lexi and Duncan did not have a special power of appointment over the trust.

One other mistake that David Bowie made in his estate plan was that he did not institute the decanting procedure, which an authorized trustee, not the grantor, transfers assets from one trust into another trust which contains the necessary changes that will achieve the intended purpose. Since he did not use this process, Iman’s trust could not be transferred from one to another.

When creating an estate plan, make sure to use the decanting process. The decanting process can be a powerful tool for post- mortem estate planning and should always be considered whenever testamentary trusts are created. Don’t be under pressure! Create your estate plan today!

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Creating An Effective Will

Melinda-gimpel-699368-unsplashWhat is a will? How can I create one that is effective? These two questions are very common when creating a will. A will does play a vital part in how the money or any personal property is distributed amongst future heirs. By creating an effective will, it can be helpful with planning the future. In fact, there are eight simple steps in order to create an effective will that will save you time when planning the money distribution.

  1. Decide what personal property to include in your will
  2. Decide who will inherit your estate
  3. Choose the right executor to handle your estate
  4. Choose the right guardian for your children
  5. Choose a guardian who will take care of your children’s personal property
  6. Make your will
  7. Sign your will in front of the witnesses
  8. Store your will in a safe place

With these steps, you can avoid the troubles that many celebrities like Prince and Aretha Franklin had with their estates. By having a will, you will also avoid the troubles and litigation in probate court. Create your will today!

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan

Princess Diana’s Estate Plan

9aa3f79b8231f3c510cf05d1b718abbf“Family is the most important thing in the world.” Diana, Princess of Wales, was the most beloved soul that left the world too soon. When Princess Diana died on August 31, 1997, the whole world mourned because their queen was gone and her legacy of social work was cut way too short thanks to the paparazzi. Unfortunately, Lady Diana Spencer’s failure to have a proper estate plan came into play 17 years after her death.

Along with creating a will, Diana had created a Letter of Wishes. That letter contained the fact that ¾  of her jewelry and prize possessions were to be given to her sons, Prince William and Prince Harry and the ¼ would be given to her 17 godchildren. Unfortunately, this letter was not recognized and her godchildren only received one item of Diana’s estate. This letter went undisclosed for several years until it was revealed due to the outrage of the parents of the godchildren who were supposed to receive the ¼ of Diana’s estate.

According to the executors of her estate, they had filed a “variance” after her death which was supposed to distribute the money to her sons until they turned 30 which of course did not occur.

In Diana’s case, Personal Property that is valuable and important should be directly in a will or trust. Not a letter. If Diana had done this in her estate plan, there would be no questions about what the deceased individual wanted. Also, there would have been no variances. Even though Diana was the beloved princess of the world, by making the mistakes and causing much havoc in her family, her estate plan ended up in turmoil.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

 

 

 

Sonny Bono’s Estate Plan

“I’ve got you babe.” Those were the words that the beloved Sonny Bono said to Cher in 1965, 33 years before his tragic death in 1998 from a ski accident. Salvatore “Sonny” Bono was a comedian, a father, a singer, and also a congressman who appealed to to the younger generations as a figure of American singer- songwriters. His fame skyrocketed after he married his second wife, Cher in 1964 and produced a show, “The Sonny and Cher Show,” which featured even their own daughter Chaz(Formerly: Chastity) Bono, who is now a man.

Along with his career, his death also sparked some difficulty. Since he died without a will, his estate was even up for grabs, even for his second wife Cher. Cher sued Sonny’s fourth wife, Mary Bono, and the estate for $1.6 million dollars that was in unpaid alimony. That money consisted of: $25,000 per month for six months, $1,500 per month for child support, and $41,000 in attorney fees. Whether or not Cher collected this money is up for debate even to this day.

By not creating his will, Sonny’s legacy suffered drastically. It was all filled with legal fees and like before it is now up for grabs. Don’t make the same mistake that Sonny did. Create an estate plan.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients, Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

 

John Lennon’s Estate Plan

John Lennon, a beloved songwriter and singer from the band The Beatles’, was murdered tragically at the age of 40 in 1980. John Lennon always had the motivation to change the world and to imagine a life without destruction. With the backup support from his wife, Yoko Ono, Lennon became a voice for the people of the world. Instead of naturally giving his son Julian full control over his estate like he did at first, Yoko Ono got full control over Lennon’s original song rights and his image. Unfortunately, Lennon’s estate plan became sad just like a ballad due to his son Julian’s fury over his estate. Sixteen years after Lennon had passed away, Julian sued Ono for a larger part of his father’s estate. Eventually, it was settled completely in 1996 and Julian received 20 million in English pounds after the long and limitless legal battle versus Yoko Ono. Some of the lessons that can be learned from Lennon’s estate plan include: Don’t leave your children out of will, Create Steps in order to make sure each one of your heirs receives their part, and Create an Additional Trust just in case your child gets left out. By using this advice, you can avoid family feuds and will be able to make sure your estate plan is executed smoothly.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients,Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Mistakes That Aretha Franklin Made In Her Estate Plan

Aretha Franklin, just like her fellow performer Prince, was undoubtedly talented beyond her years. Unfortunately, she did not have a will set up that would enable her loved ones to get what they deserved, including her child Clarence, who is 63 years old, that has special needs that require attention. If you follow in this path just like Franklin, the disbursements of money could be delayed, very detrimental family disputes may arouse, your estate as a whole may require extra taxes, and ultimately, your financial life could become a public record! If you have a child that requires special attention and you don’t have a will, your child will not receive any government benefits. If you don’t have a will or a trust, get one written up before it is too late! If you don’t follow through like Aretha did, your estate and probate deal will become public, not private.

Michelle Profit is an estate planning attorney serving Maryland and the District of Columbia. A Harvard Law School graduate, she has worked in the financial services industry for over 20 years. A dedicated advocate for all of her clients,

Michelle Q. Profit personally handles each client case from start to finish to meet the client’s needs and objectives. Michelle listens in the consultation sessions and works with any other client accountants or financial planners to create a comprehensive estate plan.

Why You Need an Estate Planning Attorney

Why You Need an Estate Planning Attorney

MP900400337You might think that you do not need professional assistance for your estate plan because you know who you want to get what. There is more to estate planning than that.

It is actually easy to create an estate plan for yourself. You can simply write your own will, directing who should get what pieces of property.  If you execute that will properly with witnesses and signatures, your will can be probated.

If you are not certain that is the best idea and would like a little bit more help, download some prepared forms to fill out from an online service at a low cost. The ease of doing that might make you think that an estate planning attorney is not necessary.  However, there are other reasons to see an attorney, as the Huntsville Item points out in "Do you really need an estate planning attorney?"

Those other reasons include:

  • The estate planning attorney knows about property law and how different types of property are handled differently by courts. If you do not get this correct in your will, your estate can face difficulties.
  • There are different types of estate planning documents that do different things. Estate planning attorneys can help you pick the right ones for your unique circumstances.
  • Estate taxes are still a concern at the federal level for many people and in several states. A professional is needed to properly plan around them.
  • The attorney can also help craft your estate plan in a way that compliments your other financial goals, often including paying less in taxes.

Reference: The Huntsville Item (May 21, 2018) "Do you really need an estate planning attorney?"

 

Planned Giving

Giving-to-charity2One of the ways that you can leave a good legacy behind, is to provide money to charity in your estate plan.

Your worth is likely more than the sum total of your assets. You have worth that does not have any direct monetary value. Your capacity to like and love your friends and family cannot be given a monetary value, for example. However, in estate planning, it can often seem like the only thing you will have left at the time you pass away, are assets that have monetary value and need to be given to other people.

You cannot give away your capacity to love after death. However, that does not mean your other value has to be left out of your estate plan completely. You can use your estate plan for planned charitable giving, as the Nashua Telegraph discusses in "Planning to give and leaving a lasting legacy."

Planned giving is simply making provisions in your estate plan that a certain amount of money or a percentage of your estate's assets should be given to charity. It is a popular option for people. It is popular not only with the wealthy, but also with people of more modest means who want to leave something behind for good causes.

There are several different ways you can make charitable donations a part of your estate. Some are as simple as a few lines written into a will and others are for more complicated, including setting up special trusts for the purpose. An estate planning attorney can help you choose the best way to do so.

Reference: Nashua Telegraph (May 20, 2018) "Planning to give and leaving a lasting legacy."

Estate Planning, Wills, Trusts

Your Executor Is Important

One of the simplest things that you can do to help prevent your estate from facing difficulties, is to make the right choice about who your executor should be. MP900309139

People who get wills, normally put a lot of thought into how they would like their property to be distributed after they pass away. It is very important to them, that their wishes are carried out and everything goes to the appropriate heirs. However, often relatively little thought is put into who should make sure it all happens.

The person in charge is the executor. Instead of thinking about whether the person they are choosing is the right person, many people just pick a close friend or relative. This can be a very big mistake, if the person does not know what they are doing, as Forbes points out in "Choosing an Executor for Your Estate."

The executor of your estate will have a lot of work to do. There are often important tax decisions that need to be made quickly. The executor needs to determine what assets you have at the time you pass away.  However, they cannot just give those assets to the people you want to have them.

First, they need to go to probate court and be officially appointed to administer the estate. They will then need to determine, if you had any debt when you passed away. That debt normally needs to be paid out of your assets, before any property can be distributed.

Your executor needs to be someone who not only has the time to serve in the capacity, but also can handle administrative and financial tasks well. Put some thought into this important decision.

Reference: Forbes (May 16, 2018) "Choosing an Executor for Your Estate."

 

Harper Lee’s Will Unveiled

Harper Lee valued her privacy while she was alive. Her will suggests that she also values it in death. MP900398819[1]

After writing To Kill a Mockingbird, Harper Lee mostly kept out of the public eye. She did not release another book for decades and made very few appearances.

She died in 2016. Journalists and literary historians have been attempting to piece together details of the author's life, but they have met with little success. She was a private person and those who knew her have not been willing to talk very much.

Lee’s will has been unsealed but it does not reveal very much either, as Al.com reports in "Harper Lee's will is unsealed but questions about the legend of American literature remain."

Lee's will directs that all of her assets, including literary property, be put into a previously created trust. Details about the trust are not publicly known. There does not appear to be a way to make them public. The trust's beneficiaries and trustee are not known.

What Lee created is known as a pour-over will. It is a simple way to have assets transferred to a trust, after someone passes away. Since trusts do not have to go through probate and are private, this is a great method to use for people who do not want the details of their estates known to the public, as Lee apparently did not.

Reference: Al.com (Feb. 27, 2018) "Harper Lee's will is unsealed but questions about the legend of American literature remain."

Suggested Key Words: Wills, Trusts