Month: May 2013

How Much Does a Michigan Will Cost?

May 25, 2013 /

“Yeah, hi, I’m just calling to find out how much a will costs here in Michigan?”  As a Grand Rapids, Mi wills and trusts attorney, that is probably the single most common question I get asked when someone calls my office about estate planning.  The right answer . . . “it depends.”  Sure, lawyers get a bad rap for giving that answer, but think about it for a second.  

Do you think all people are the same?  All families?  Do you think everyone’s goals are the same, that they have the same number of children, that those children are “good” or “bad,” or maybe no children at all.  Are they married, single, single and in a committed relationship?  Is it a second marriage, and if so, did they each have children before getting married to each other?  Did they have children after they married each other.

Or, how about goals.  Do they give to charity?  If so, which ones and how much?  What are there values – what drives their daily decisions?  What important stories do they have to share that should be passed down to future generations?  What is their income, expenses, and income tax situation?  Does anyone owe them money?  Do they expect to inherit?  How important is creditor protection to them?

You see, there are MANY different considerations that go into crafting/drafting a comprehensive estate plan that is specific to an individual or family.  And that’s what makes it difficult (virtually impossible) to “quote a fee” over the phone.  As an estate planning lawyer I spend much of my time learning and applying many different laws to client situations.  But even with knowing the law, I have no context in a 10 minute phone call.  We need time to learn from each other – I need to learn about your family and who you are (we call this Whole Family Wealth planning), and you can learn about how the law works (or doesn’t work) for your situation so you can make the best decision for your family.

Oh, sure, there are plenty of attorneys out there that will quote fees right over the phone.  And I’m ok with that – it’s their choice and their approach.  And quite honestly, families that are just looking for a form document to appease their conscience are not a good fit for the way we help families.  But, for those who want to have a plan for their family, who want to actually understand how that plan works and have a vital role in creating it, and who want to create a lasting legacy for their family, we are the ones you should call.  So why not “take the bull by the horns” and call us at 616-827-7596 today!  And if you mention this blog post, we’ll have a special discount for you.

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.

Recent Changes in Michigan Estate and Probate Law

May 19, 2013 /

I probably sound like a broken record when I talk about the “living” nature of an estate plan. I always remind our client families that it’s critically important to review their estate plan on a regular basis (for example, every 3-5 years), and especially when you experience life changes. That’s why we include ongoing 3-year reviews in all of our planing levels. You life will change, what you have will change, and what you want to have happen will change. Your plan needs to keep up with those changes or it is likely to fail you when it’s needed the most.

And . . . the law will change (often)!  So, being fresh off several days of continuing ed, I thought I would share some of the key changes in Michigan’s law related to estate planning and probate. “Recent” means within the last 1-2 years. So here goes:

  • Probate inventory fee. This is probably the biggest change of them all. The “inventory fee” that each estate is required to pay to the probate court will be less for almost everyone (at least until 2018). That’s because the value of real estate that is used to compute the inventory fee is now based on the equity value of the real estate rather than the market value (MCL 600.871(2)). Think of all the underwater or barely above water homes we’ve seen so much of in the past several years. Using equity value rather than market value can appreciably lower the inventory fee.
  • Trust decanting. No, I’m not talking about wine . . . I promise. Generally speaking, trust decanting is “pouring over” the assets of a trust into a different trust and may be done for various reasons (changing terms of the trust, changing administrative or tax provisions, etc.). And this can be done even if the original trust is irrevocable (either because you wanted it that way from the outset or because someone has passed away and a previously revocable trust became irrevocable). There was some belief that case law (e.g., court-based law) allowed for “decanting,” but now we don’t have to worry about that “grey area,” because Michigan law explicitly allows it. I’m very much in favor of this because it provides client families with more flexibility.
  • 529 Plan creditor protection. This is a HUGE planning opportunity for client families planning for their children’s college education. Effective January 2, 2013, 529 plans are protected from creditors whether owned by the parent or child (MCL 600.6023(1)(l)(iii)). This is a great way to help make sure the college savings aren’t taken by creditors.
  • Property tax uncapping. Big change here for certain transfers of real estate made after December 31, 2013. Current law stated that a “transfer” of real estate “uncaps” the annual property tax increase restriction on assessors. As of December 13, 2013, it will not be a “transfer” (and therefore will not uncap the property tax value) to change ownership of residential real estate if the person (or people) who is taking ownership is related to the current owner within the first degree (MCL 211.27a(7)(s)). Now, there are some questions about the what “first degree” means and we’re hoping for some clarification from either the legislature or the regulators. I’ll do my best to keep you updated on how they define that.

There were many more changes, but I figured most readers are probably sleeping by now so I just listed the changes I feel are most important to my estate planning and probate client families. I welcome any questions or comments you have on these items or anything else.

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.

Fighting Over the Family Legacy

May 5, 2013 /

I recently read this New York Times article on the family in-fighting over the estate of the late Merton Simpson.   Mr. Simpson was a painter and pioneering champion of African art who accumulated a collection said to be worth millions of dollars.  The story is sad, for sure.  It is also a reminder for all of us of the value of family and of having clearly spelled out wishes to help guide our chosen representatives in carrying on our legacy.  I encourage you to read the entire article – it’s not very long.

It also brings to mind something I always strongly encourage each of my clients to do – talk to others about your planning and what your wishes are for you legacy.  Many times the “others” you talk to will be family or very close friends, but it may also include close business associates, church leaders, or other people who you trust and know you well.  It’s often a great idea to record yourself sharing these thoughts.  That’s what I do with each client I work with – we have a Priceless Conversation.  Sadly, it seems that Mr. Simpson was taken advantage of by at least some of his family and friends.  Although it was a good thing that a guardian was appointed for him, it seems that the downward spiral in family and business relations was almost passed the point of resolution by that point.

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.