July 13, 2018December 13, 2025

Why You Need an Estate Attorney

When a loved one passes away, it is a good idea to get the assistance of an estate attorney, if for no other reason than to deal with all of the paperwork.

The government has many things it is very particular about. However, you are not likely to notice one of those things very much. That is that property all needs to be traceable to a particular owner or owners.

This is important to the government for tax purposes. However, as you do not generally get all your property at one time, it is not always that noticeable. It is not a lot of paperwork for most individual pieces of property.

When someone passes away, things change. Then there is a lot of property that needs to change ownership and there is a lot of paperwork that needs to be done at once, as U.S. News & World Report discusses in “How to Deal With the Paperwork Scramble After a Spouse Dies.”

It is easy to get overwhelmed and make costly mistakes when there is that much paperwork to fill out and file in such a short period of time. Those mistakes require even more paperwork and time to fix. People who are grieving and who do not know all the things that need to be done, make these mistakes all the time.

There is a good way to avoid most mistakes. Hire an estate attorney who can help with the process. The attorney knows what needs to be done and has staff to help with the paperwork.

Reference: U.S. News & World Report (June 19, 2018) “How to Deal With the Paperwork Scramble After a Spouse Dies.”

July 12, 2018December 13, 2025

Dodging an Unpopular Tax Provision

The recently passed federal tax overhaul limits deductions for state and local taxes to $10,000. It has not been popular with those affected. Estate planning attorneys might have found a way around it.

The new tax laws that were passed in December of 2017 have been controversial. Some people are very happy with the changes. However, most people have found something they do not like about them. One of the more controversial changes was that the itemized deduction for state and local taxes was limited to $10,000.

People who own expensive property in high tax states are not happy that as it will increase their taxes, in many cases. Initially, some state governments tried to figure out a way around the limit for their citizens, but the IRS shot most of those down. Some estate planning attorneys might have found a solution though, as Bloomberg reports in “How the Rich Can Dodge Trump’s Property Tax Hike.”

The idea is to first create an LLC in a non-tax state such as Delaware or Alaska. Real estate ownership is then transferred to the LLC. After that, several non-grantor trusts are created. Ownership of the LLC is then divided up and transferred to the new trusts. When tax time comes around, each non-grantor trust can take a $10,000 deduction for any property taxes that were paid by the LLC. Effectively, the new deduction limit can be rendered moot. Ask your local estate planning attorney about this practice.

The IRS could issue a new regulation against this practice. However, estate planners think it will work.

Reference: Bloomberg (June 15, 2018) “How the Rich Can Dodge Trump’s Property Tax Hike.”

July 11, 2018December 13, 2025

Have Fun

Staying both mentally and physically active has positive health benefits for elderly people. However, many have forgotten how to do that in enjoyable ways.

If you go to any park or recreational center, you are likely to see a lot of young people enjoying themselves. Kids know how to play. It is not something they need to be taught to do normally.

It does not matter if their activities are structured playing a game with formal rules. Kids will simply find a way to have fun. However, when kids grow up and turn into adults their lives change. They often do not have the time to have a lot of fun. They must go to work. They must raise their children. They have other responsibilities.

When they retire, they have the time to have fun again. However, it is somewhat rare to see a group of elderly people at a park or rec center having fun. They have forgotten what they once knew how to do, as the Wills, Trusts & Estates Prof Blog discusses in “A Lost Skill Among the Elderly: How to Have Fun.”

What this means for retired people is that a lot of them spend a lot of time watching television for hours and hours at a time. While some television viewing is not going to hurt anyone, research suggests that elderly people who are mentally and physically active see health benefits. It would be better for elderly people to spend less time in front of the television and more time having fun.

Of course, not all elderly people are physically capable of playing the same games they did as a child. However, there are other activities available for the elderly in most places.

Reference: Wills, Trusts & Estates Prof Blog (June 13, 2018) “A Lost Skill Among the Elderly: How to Have Fun.”

July 10, 2018December 13, 2025

Social Security Can Be Fixed

People who are opposed to the Social Security system claim that it is about to go broke and disappear soon. That is not true.

Social Security opponents and opponents of government spending in general, like to make the claim that Social Security is going to go broke or bankrupt. They then normally use this piece of information to get people to support cuts to Social Security benefits or increases to the age of retirement.

They are using recent government reporst as ammunition to suggest that if something is not done, then Social Security will go broke in 2022. The problem is the claim is not true, as Forbes discusses in “Fake News: Why Social Security Isn’t Going Broke.”

Social Security currently takes in more money every year than it pays out in benefits. That has created a surplus in the Social Security Trust Fund. What will happen in 2022 is that, due to demographic changes, Social Security will start paying out more than it takes in. However, since there is a surplus, current benefits will not have to change. The surplus can be spent down. It will not run out until 2034. When that happens, Social Security will not disappear. Instead benefits will be cut slightly, as the program will only be able to pay out as much money as it takes in.

This means is that politicians have a lot of time to fix Social Security, if they are willing to do so. They do not need to raise the retirement age or cut benefits. They can also fix things by increasing funding for the program.

Reference: Forbes (June 18, 2018) “Fake News: Why Social Security Isn’t Going Broke.”

July 9, 2018December 13, 2025

Estate Planning for the Separated

Two recent celebrity deaths highlight a potential issue in estate planning. What happens when a couple does not get divorced but separates amicably?

The recent deaths of fashion designer Kate Spade and celebrity chef Anthony Bourdain have elicited an outpouring of grief. They both committed suicide, which came as a shock to friends, family and fans. However, they both also share something else in common.

At the time of their passing, they were both separated from their spouses. That highlights a peculiar issue in estate law as Forbes discusses in “Kate Spade, Anthony Bourdain And Estate Planning When You Are Separated.”

If Spade and Bourdain had gotten divorces, then their spouses would not be entitled to any portion of their estates. If the spouses were included in the estate plan, they would be constructively written out by a court. However, that does not happen when a couple is separated.

The spouse of the deceased retains full rights to the estate. That means if there is no estate plan, the spouse will normally receive the entire estate through the laws of intestate succession. If there is an estate plan, then the spouse receives anything the plan says he or she gets. If the spouse does not receive enough of the total assets of the estate, then the spouse can elect to take his or her spousal elective share (the amount of which varies between states).

Of course, both Spade and Bourdain might have been perfectly fine with their spouses receiving their assets. They did after all choose not to divorce, but instead to separate.

Reference: Forbes (June 12, 2018) “Kate Spade, Anthony Bourdain And Estate Planning When You Are Separated.”

June 29, 2018October 25, 2023

Funding a Trust

After creating a trust, you need to fund it. That does not have to be a difficult process.

One of the many problems of “discount” trusts, either from a trust service or an online document service, is that they never get around to funding the trust. When the settlor passes away, the trust does not work as intended, because there are no assets in it to be distributed according to the terms of the trust. The time and money spent creating the trust were all wasted.

Trusts must be funded. That does not mean just putting money in them. It means transferring the title of property to the trust, as the Times Herald-Record discusses in “How to transfer assets to a trust.”

Transferring title of property differs for different types of assets. However, it does not need to be difficult for any asset type. It is mostly a matter of filling out the right paperwork and getting that paperwork to the proper authority. For example, when you purchased your home, the title was transferred to you and registered with your local Register of Deeds. You just need to do the same thing for the trust this time.

There is someone who can help you make sure that your trust is properly funded. That is an estate planning attorney who knows how to transfer title in different asset types. This is one reason why it is better to hire an attorney to create a trust, instead of using a cheaper service. It helps make sure that your trust gets funded and will be effective when it is needed.

Reference: Times Herald-Record (May 31, 2018) “How to transfer assets to a trust.”

June 25, 2018

Michael Jackson Estate Sues Disney

The Michael Jackson estate has seen so much litigation that it should probably get bulk discounts for court and lawyer's fees. The latest litigation has the estate suing the Walt Disney Company.

There might never have been a more contentious estate than that of Michael Jackson. Every few months, just when it seems things have died down, the estate is back in the news because it has been sued or is suing someone itself.

The latest case is over a documentary produced by the Walt Disney Company. In the documentary, footage of Jackson's children was used and short clips of two of his songs were also included. The estate claims this is copyright infringement and that Disney did not even ask permission to use the material.

Disney claims it did not need permission, because it was making a documentary. TMZ reported on this case in "Michael Jackson Estate Sues The Walt Disney Co. You've Got Balls For Exploiting MJ's Kids!!"

The estate does have a duty to protect any copyrights entrusted to it. If someone were to make a movie and use an entire Michael Jackson song in it, then the estate would need to file a lawsuit, if the song had been used without permission. However, in this case the estate might be a little overzealous.

Copyright does allow for the use of material without permission, if that use falls under the fair use doctrine. Doctrine normally does allow for short clips of material to be used and more material can be used, if it is done for educational purposes.

Reference: TMZ (May 30, 2018) "Michael Jackson Estate Sues The Walt Disney Co. You've Got Balls For Exploiting MJ's Kids!!"

June 18, 2018

What Your Kids Need to Know about Your Death

It is important that you talk to your children about what you want to happen, if you ever become terminally ill and what you want to happen, after you pass away Most parents dread the thought their children might become ill and pass away before the parents. No matter how old the child is when it happens, it is painful for parents to lose their children. However, the reverse seems normal.

That parents will pass away before their children, seems like the natural order of things. Because it seems so normal, it is not often discussed how painful this can be for the children, even adult children. Parents do not talk to their children about what they want to happen when they are ill or deceased. However, things would go a lot better if they did, as Forbes discusses in "Talking To Your Kids About Your Dying Wishes."

You can make things a lot easier for your children, by letting them know a few things. Talk to your kids about what you want to happen, if you are ever terminally ill and on life support. Children need to know whether you would like to stay on life support or not. Tell your children about what your funeral wishes are and if you have made any arrangements. It is also a good idea to talk to your children about what is supposed to happen to your property, after you pass away.

The more your children know what to expect, the less likely they are to fight between themselves. The conversation with your children does not need to be long or contentious. It is not a difficult conversation to have at all. They just need to have an idea about what you want to happen, so they are not surprised at the same time they are grieving over losing you.

Reference: Forbes (May 15, 2018) "Talking To Your Kids About Your Dying Wishes."

Suggested Key Words: Estate Planning, Elder Issues

June 16, 2018December 13, 2025

Why You Need an Estate Planning Attorney

Why You Need an Estate Planning Attorney

You 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?”

June 15, 2018December 13, 2025

Planned Giving

One 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

Building Legacies that Last Estate Planning and Elder Law

Author: Profit Law Firm