Month: September 2012

Michigan’s New Durable Financial Power of Attorney Law

September 30, 2012 /

Benjamin Franklin once said that there are two things that are certain – death and taxes.  Well, as a Grand Rapids, Mi estate planning attorney, I’m going to add one to that list – laws will constantly be changing.  I remind each of our client families that their lives, what they have, what they want to happen with what they have, and the laws will change throughout their lives.  That’s a big reason why we include ongoing three-year plan reviews for all our clients at no charge.

Today, a change to the durable financial power of attorney law goes into effect here in Michigan.  If you enjoy reading the law yourself, you can read MCL 700.5501.  I won’t go into intricate detail on all the changes, but I will point out a big one.  For durable powers of attorney signed on or after October 1, 2012, the attorney-in-fact must sign a statutory acknowledgement of his or her responsibilities.  The list of responsibilities can be found here (MCL 700.5501(4)).

It’s important to note that third parties (e.g., banks, retirement plan companies, life insurance companies, other financial institutions, and other people) will not be liable to anyone involved for their good-faith compliance with a durable power of attorney, even if there is no signed acknowledgment.  And, I think more importantly, third parties are not liable to anyone involved for requiring that the attorney-in-fact sign an acknowledgment before they will recognize the attorney-in-fact’s power under the durable power of attorney.  It wouldn’t surprise me if all financial institutions require the acknowledgment.  And if that means more of them will comply with a durable power of attorney, I’m all for it.

Practically speaking, what does that mean for you?  First, make sure you work with an attorney who focuses on estate planning, not one who “dabbles” in it, so they are up to speed on the latest laws and planning techniques.  Second, if you haven’t updated your durable power of attorney recently, now would be a good time to do it.  And third, make sure you have the your attorney-in-fact appropriately sign the required acknowledgment so that they have better odds of financial institutions following it when it’s needed most.

Give us a call if you have questions or need to have your durable power of attorney reviewed and updated.

Michael Lichterman is an estate planning and charitable 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 “stuff” – it’s about who your are and what’s important to you.  He focuses on estate, charitable, and asset protection planning for all generations (“young” and “experienced”), the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses, and pet planning.  He enjoys creating life long relationships with his clients centered on their family’s values, insights, stories and experiences.

Estate Planning’s Critical Importance for Blended Families

September 16, 2012 /

Being a Grand Rapids, Mi estate planning attorney and being married to someone who works in the financial industry, I’ve seen the disaster that lack of planning (or poor planning) can cause in blended families (second marriages, “uncommon” children, etc.).  As a matter of fact, I wrote this previous post about a very common mistake that can disinherit your children.

But don’t take just my word for how important quality, comprehensive estate planning is for blended families.  Read this USA Today article about family feuds in estate planning and how they are expected to become more common due to changing demographics.  In particular, read the section titled “Tangled Family Trees.”  What to you think?

If you are part of a “blended family,” run, don’t walk, to an attorney who focuses on estate planning for blended families.  Why would you risk waiting?  Call us at 616-827-7596 today!

Michael Lichterman is an estate planning and charitable 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 “stuff” – it’s about who your are and what’s important to you.  He focuses on estate, charitable, and asset protection planning for all generations (“young” and “experienced”), the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses, and pet planning.  He enjoys creating life long relationships with his clients centered on their family’s values, insights, stories and experiences.

Do it Yourself (DIY) Estate Planning – Risk Worth Taking?

September 9, 2012 /

Do it yourself (DIY) estate planning is something I’ve warned families about many times.  My first personal experience with it was reviewing an “estate plan” done on Legal Zoom.  You can read about it in this previous blog post.  Then again, you would probably expect me to discourage families from using DIY estate planning products because I’m an estate planning attorney.

The question asked by many families is, “why should I hire an attorney when we can do our own estate planning (using online forms, etc.)?”  That’s a valid question.  After all, many people change the oil in their own car and fix things around their home.  Why not create your own estate plan?

Well, I recently ran across this Forbes.com article on “What Could Happen if you Write Your Own Living Trust,” and am sharing it because it’s not written by an estate planning attorney.  I encourage you to read the article yourself, as I believe Ms. Jacobs does a great job covering some of the practical downsides of doing your own planning.  

The article’s many good points can be summed up in this statement: “The trouble with do-it-yourself planning is that even if your situation seems simple, there are many oddball things a layman wouldn’t think of that can go wrong, especially with wills and trusts. These mistakes can end up costing you or your heirs a lot more than you saved in legal fees.”

So, what do you think?  If you still want to do your own estate planning, what’s keeping you from working with an attorney?  Fees?  Reputation of attorneys?  Let us know and we’ll help you through those decisions, whether we end up working together or not.  Call us today at 616-827-7596.

Michael Lichterman is an estate planning and charitable 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 “stuff” – it’s about who your are and what’s important to you.  He focuses on estate, charitable, and asset protection planning for all generations (“young” and “experienced”), the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses, and pet planning.  He enjoys creating life long relationships with his clients centered on their family’s values, insights, stories and experiences.