Month: July 2011

Family Stories as a Priceless Treasure

July 31, 2011 /

This post was originally one of my bi-weekly e-newsletters that I send to my clients, friends, family and those who have asked to receive it.  It received an unprecedented response from those who read it and I am grateful for the kind words that were shared with me.  I thought twice before reproducing it here for 2 reasons: (1) I don’t like to reproduce things – I like to be original each time (or as near to original as I can be), and (2) it brought up all the same emotions it did when I first wrote it.  I decided to go ahead and share it because the topic is too important to not share.  Please share your comments and thoughts – and if you would like to receive the e-newsletter, let us know via our contact us page.  Without further ado, we’ll pick up in the e-newsletter as I get into the topic . . .

. . . Even with all the fun and enjoyment of the July 4th holiday, I did receive some very sad news since the last e-newsletter.  My grandpa (“papaw”) passed away after a long bout with cancer.  By God’s grace he made it much longer than the doctors expected, but it still wasn’t enough time for us.  And in the hustle and bustle of family life and running the law practice, I have one big regret.  This is by far the most emotionally challenging e-newsletter I have written, but I’m hoping that you won’t make the same mistake I did.  Which leads to this week’s strategy note . . .

Mike Lichterman’s
“Straight Talk” Personal Strategy
Stories of our Forefathers
Sure, given the recent 4th of July holiday the title could refer to stories of Franklin, Jefferson, Adams and many of the founders of our great country.  In this case, it is a reference to happy and sad, joy and regret, memories and forgotten memories.

This past Christmas, all of my mom’s family gathered together to celebrate (we try to do that every 3 years).  This year was particularly important, as Papaw was not doing so well health wise.  He still seemed to have a lot of strength, but you could never be sure with him because he was such a strong man . . . he wouldn’t show pain because he didn’t want folks to worry about him.  I still remember a few years back when we visited him in Florida and he said, “well, I hope you didn’t come down here to see some sick guy . . . I’m doing just fine . . . and it’s great to have you all down here.”

Little did I know that this past Christmas was the last time I would see or talk to him.  Yes, that was as hard to write as you might expect.  I’m so thankful that we had that time and that he got to spend some time with Matthew and Elizabeth (they loved their Papaw and rode on his knee just like I did when I was growing up).  But OH the things I would have done different had I known it would be the last time.

You probably know about the priceless conversations that I have with all of my clients.  The recorded conversation about any number of topics, from children to legacies, wisdom and values.   I call it planning for your Whole Family Wealth, because your values, insights, stories and experiences or your most valuable asset.  Here comes the hardest part of the email . . . I never did a priceless conversation with my Papaw and it tears my heart out every time I think about it.  He had so many great stories and pearls of wisdom and to have it recorded in his own voice would truly be priceless.

Sure, we talked about doing it at Christmas.  Many of us felt we couldn’t do it because we were too close to the conversation emotionally.  Papaw felt he couldn’t do it because he didn’t think he had anything valuable to share.  Long story short, time moved forward, he went “down hill” quickly, passed away and the conversation was never done.  I’m beyond disappointed in myself for not pushing myself harder to do it.

Sure, maybe I’m being to hard on myself and maybe writing this was a way to grieve and move on, but in my mind the point of sharing the story with you is twofold: (1) did you feel the emotion and the power in the story?  That’s why they need to be shared, and (2) please, please don’t make the same mistake I did.

I expect all my clients to live long, health, joy-filled lives.  But I know that at some point we all will pass from this life.  If I’m alive when it happens to my clients I can assure you that the most valuable thing I will be able to provide their loved ones with is not guidance through a difficult situation, it’s not being a sounding board for grief and frustration, no . . . it will be handing them each a copy of the priceless conversation CDs their parents (or sibling or child) recorded as part of the estate plan we helped them put in place.

I know this was long and probably more personal than you would expect in my e-newsletters, but I wanted to make sure I shared the story and what I learned from it.  I wish you the very best and I hope you have a fantastic week!

Warmly (and until next time!),
Mike Lichterman

Michael Lichterman is an estate planning and business planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

Aging Issues and Estate Plans

July 24, 2011 /

As a Grand Rapids, Michigan estate planning attorney, I take special note of conversations in the media about estate planning.  That’s how I ran across this recent Grand Rapids Press article entitled “Aging Issues Can Imperil Retirement.”  I believe the overall emphasis of the article is important for two reasons: (1) it points out that everyone needs an estate plan; and (2) trusts are not just for the financially wealthy or for minimizing estate taxes.  After a general discussion, the article lists specific, basic guidelines that can help protect seniors and their families from the consequences of declining mental health.

You’ll notice that #1 on the list is to prepare an estate plan.  I couldn’t agree more.  Why?  No, it’s not just because I’m an estate planning attorney.  It’s because everyone has an estate – either you can say how you want it handled by working with an estate planning attorney to put an estate plan in place, or you can let the Michigan government’s one-size-fits-all plan control what happen.  I think it is important to quickly note the article’s mention of having a living will.  As I previously wrote about in this post, living wills are not legal documents in Michigan.  So make sure you have a Michigan healthcare power of attorney and patient advocate designation.

You’ll notice that having a living trust is #3 on the list.  I’m happy to see that it made the list.  Why?  Because there are so many misconceptions about trusts . . . the biggest being that you have to be wealthy to need one or benefit from one.  I assure you that most of the great families who work with me to create a trust plan for their family are not wealthy by any means.  To give you some examples of “everyday people” reasons, read this previous post.  I’m also pleased to see that the article discusses the benefits of a trust while you are still alive.  There is a big misconception “out there” that trusts are only for when you pass away.  Not so – there are huge benefits to having a trust while you are living.  I will add that in my experience the fees are not usually the 2-3% stated in the article – in my experience that is a high number.

And finally I think it should be emphasized that these issues are too important to do it yourself.  Here in West Michigan we have a very strong work ethic and like to “take the bull by the horns.”  I know . . . I’m that way too.  That’s why we have so many successful individuals and companies.  However, this is not an area where you should do it yourself – there is too much to loose.  To get some real world examples you can read my previous posts on the topic by clicking here, here and here.

After reading the article and this post, why wouldn’t you call us to make sure you have a plan that is uniquely you and provides for you and your family during life and after life?  Call us at 616-827-7596 and mention this blog post for a special treat.

Michael Lichterman is an estate planning and business planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

Business Membership Plans and How It Can Protect Your Business

July 10, 2011 /

As many of my readers and business clients know, I bring a very unique background to being a Michigan Business Attorney.  A degree in Finance, Vice President of a commercial equipment leasing company, small business owner and entrepreneur.   This background and my own personal view on true client service caused me to step back and look at the way Michigan small businesses worked with their business lawyer.

Guess what?  I didn’t like it.  The most common model is based on the “billable hour.”  I’ve experienced that both as a client (at the leasing company) and as an attorney.  Yes, it’s true, I billed by the hour when I first opened my firm . . . it was all I was taught and all I knew.  I quickly realized that billing by the hour is a lose – lose situation.  When you’re billed by the hour you don’t want to talk with your attorney.  Trust me, I know because I didn’t want to when I was a client.  And it felt a little bit like giving the attorney a “blank check” because the bill would be for however much time it took.  Sure there were estimates, but it wasn’t set in stone.  I wanted to have a relationship with my clients, and I knew I couldn’t do that billing by the hour.

Then there was the flat-fee model.  A specific dollar amount for a specific transaction.  It still felt cold and impersonal.  The reason was that it was “just a transaction.”  Again, I wanted to have an ongoing relationship with my clients and many of them expressed an interest in something more than the “one off” transaction.  Why?  Because we’ve seen first hand the incredible value provided by ongoing counsel from a business lawyer (thankfully it was at a time that I wasn’t paying the bill!).  Even with a flat fee for the services, once the transaction was over it was a case of “well, if you need anything else, just give me a call.”  That was it!

I can tell you from personal experience that the followup call was rarely made.  Why?  Well, the simplest reason was the owner was busy running the company and it didn’t come to mind.  Another common reason was fear of the cost involved for making that call.  I knew there had to be a better way.  So I thought about what I would have wanted as a business owner who wanted to help ensure the longevity of my business: ongoing guidance, value and a reasonable fee.

The result?  The Lichterman Law Business Membership Program.  Sounds awfully official doesn’t it?  The aim of the business membership program is to provide small business owners and entrepreneurs with the ongoing legal guidance they need and want at a monthly flat rate they can afford.  Membership levels range from our base Counsel Plan all the way up to our Pinnacle Plan.  Each membership level is designed to provide small business owners with the most commonly needed business legal services.  The best part (according to current business members) is the as needed phone and email access included in every plan level . . . and the kicker is that the phone/email access is not limited in any way.

The best part about our Business Membership Program is that it is the result of years of research, talking with dozens of business owners and business advisers about what they need and value most.  It’s no surprise that many of those owners have or are current business membership participants.  It truly is created for business owners, by business owners.

Despite offering business membership plans for the past few years, you probably haven’t heard much about it.  That’s because we are very selective in who we offer business membership plans to so that we can provide the unsurpassed level of client service for which we are known.  We’ve had so many business owners tell us to spread the word, that we finally decided to unveil it more publicly (starting with this and future blog posts).

You can get started by reading more about our philosophy by clicking here.  Then call at 616-827-7596 to find out if you qualify for a business membership plan.  Remember, we take a limited number of monthly membership clients and it is first come, first served, so call quick.  We’ll even provide a 2 hour small business needs analysis meeting at no charge if you mention this blog post.  Why wait?

Michael Lichterman is a relationship-based business attorney who leverages his business, marketing and legal knowledge to help business owners and entrepreneurs create a Foundation for Business Success™.  This goes beyond merely drafting a set of documents – it’s about  proactively preparing the business and the business owner for continued growth while remembering the “human side” of running a business.  He best serves small business owners (less than 50 employees) and entrepreneurs.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients  and their businesses – many of which have become great friends.

What’s Included In Your Estate Tax Estate?

July 3, 2011 /

In last week’s post, we took a look at what an “estate” is here in Michigan.  Guess what?  That’s not the only “estate” you need to consider when working with a Grand Rapids, MI estate planning attorney (or going through the probate process . . . yuck!).  You also need to consider your federal estate tax estate. No, that doesn’t necessarily mean that you will have to pay estate taxes, but you do have to add things up to find out if estate tax is due.  To do that, you need to know what is included when adding up those numbers.  I guarantee you there will be at least a few surprises.

The easiest way is to think about everything you own . . . everything!  Real estate, bank accounts (including some or all of jointly held accounts), retirement accounts, brokerage accounts, automobiles, collectibles, business interests, and life insurance, just to name a few.  Did you catch that last one?  It is a surprise to many people that life insurance they own is included in determining the size of their estate tax “estate.”  I regularly hear, “but I was told life insurance is not taxed!”  Well, yes, it is not income taxed and it may not cause any estate tax (depending on the size of your “estate”), but it is included in determining how big your estate tax “estate” is and whether any estate taxes are due.  You can read my previous post about how to avoid that by clicking here.

We’re not done yet!  Here’s another big surprise to many people . . . your estate tax “estate” even includes some things you gave away!  Yes, you read that right.  A couple of common examples are gifts made within 3 years of death and property that you gave away but in which you retained an “interest.”  The definition of “interest” for these purposes is too in depth for this post, but it is roughly (very roughly) the same as keeping a “benefit” of what you gave away (e.g. the right to say who gets it, the right to receive payments, etc.).

A little bit surprised by all that’s included?  Most people are.  Here’s the thing about probate (your Michigan estate) and estate taxes (your estate tax estate) . . . they are voluntary!  The only people who have deal with them (or whose loved ones have to deal with them) are those who don’t plan to avoid them.

So you can see that we all have an estate and in many cases it is bigger than we thought.  Knowing that, why wouldn’t you call us at 616-827-7596 to have your say in how your “estate” is handled?  We look forward to planning with you.

Michael Lichterman is an estate planning and business planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.