Tag: west michigan estate planning

Popular Press Recognizes Importance of Estate Planning

December 18, 2011 /

I’m always encouraged when I see non-legal publications recognize estate planning as critically important for all families and individuals.  I recently ran across just such an article in USA Today, entitled “12 Smart Ways to Spend $1,200 in 2012.”

The article is a relatively short, easy read, so I won’t recap it here – I will just point out a few of my observations.  The first observation is this: they have estate planning WAY too low on the list!  #12 . . . the last one . . . seriously?!  They put a new computer and an e-reader higher on the list than estate planning.  You have to be kidding me!  I appreciate that they included it on the list, but what does it say to caring families and individuals to have it listed last?  It’s already something that many families put off for any number of reasons and ultimately don’t have in place (or don’t have an updated one in place) when it’s needed most.  Telling people that a new computer, e-readers, and supporting a political candidate are more important than estate planning is a sad commentary on something that can “make or break” families in many cases.

Second comment – I applaud them for recognizing and recommending that everyone needs an estate plan and needs one long before retirement.  Estate planning is often misconstrued as being only for the “wealthy” (whatever that means).  I can assure you “estate” is not meant to refer to a stately colonial mansion sitting atop rolling green hills surrounded by white fencing and horses galloping around.  Everyone has an “estate.”  It is simply everything you own (including life insurance!).  And the “planning” refers not just to the “estate,” but to caring for you while you are around (through financial and healthcare powers of attorney) and your loved ones or charities after your passing.  We never know when something will happen to us, so having a comprehensive estate plan in place helps many families have added peace of mind.

Finally, I applaud them for recognizing that a great, comprehensive estate plan is an investment, not a “cost.”  They support that when they state that $1,200 can “go a long way.”  Note that they don’t say it gets you all the way there.  Sure, you can get a set of standard documents and very little listening and counsel for that amount.  But many truly caring families realize that who they are is just as important (if not more important) than what they have, and that capturing their values, insights, stories and experiences for future generations is worth more than $1,200.

So, how about you?  Why wouldn’t you make 2012 the year that you take this critical step to securing your family’s future and giving yourself some added peace of mind?  Anyone can say “I’ll get around to it.”  It’s the truly caring families that make estate and legacy planning a priority, realizing that procrastination may leave their children and other loved ones in an unthinkable situation.  So give us a call at 616-827-7596 to “get the ball rolling” on a New Year’s resolution to put a caring plan in place for your family.

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.

What Is a Pour-Over Will?

September 25, 2011 /

As a Grand Rapids, MI estate planning attorney, I see  a growing number of families who recognize the benefits of a living trust centered estate plan and want a living trust as the foundation of their estate plan.  Many times the other documents in a comprehensive living trust plan are overlooked or giving only a small amount of attention.

One such important planning document is the pour-over will.  No, it’s not actually called that in most cases.  “Pour-over” is the common way to refer to it and helps explain what it is and how it works.  Although the hope is that you never need to use your pour-over will, it plays a very important role if you do.

A pour-over will is . . . well, a will.  More specifically it is the type of will that is often used in a comprehensive living trust estate plan.  In such a plan, the living trust plays the most important role.  In your living trust you will control who receives what, how they receive it, when they receive it, what happens if you are incapacitated, who is responsible for managing the trust assets, and much more.  Think of it as the “hub” of the estate planning “wheel.”

Well, the catch is this – a living trust controls only what it owns.  Said another way, if the living trust doesn’t own it, whatever “it” is will go through the probate court process (unless it is directed by a beneficiary designation or other non-probate transfer mechanism).  That is why it is so critically important to make sure your living trust is fully funded (read my blog post on the topic by clicking here).  But what happens if something you own is not owned by the living trust and ends up going through the probate court process?

That’s where the pour-over will comes in.  The reason this type of will is commonly referred to as “pour over” is because it is designed to make sure anything that is part of your probate estate goes into your living trust after you pass away – it “pours” it into the trust.  It does this by directing that it happen – the will says that any property left in the probate estate at the end of the probate process will be distributed to the living trust.

And like all the parts of a comprehensive living trust estate plan, it is important to make sure your pour-over will is reviewed on a regular basis.  If not, it could fail to do what you wanted it to do!

Have questions?  Call us at 616-827-7596 or contact us via email.

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.

Why Should I Care About Estate Planning?

June 3, 2010 /

Having figured out what estate planning “is” in my previous post, let’s move on to why estate planning is important.  Because the topic is so broad, I’m going to break it down and address it based on common life stages.  If you are curious how it applies to YOU, contact me and let’s talk about it.

Let’s start by looking at how critically important estate planning is for parents with kids under 18 years old.  It really doesn’t matter if all or some of your children are under 18.  These important issues apply if any of them is under 18:

  • Establish guardianship for your children under 18 – not doing so will leave their care up to a court to decide.  Someone who doesn’t know you and what’s important to you, your family dynamics, and your desires for your children’s future, will be the one making the decision who will raise them.
  • Establish temporary guardianship for your children – not doing so could leave them in the hands of child protective services or temporary/permanent foster care.
  • Make sure you have a comprehensive protection plan for your children so your babysitter, family, friends and guardians/temporary guardians know what to do if something happens to you and have the legal documentation to prove it.  We include instructions for these important people and even include a family emergency ID card for your wallet/purse.
  • Have your estate structured so your kids don’t succumb to “lottery winner syndrome” when they receive all of their inheritance outright at 18 years old.  Think about that for a second.  Let’s take an example: 2 children and an estate valued at $500,000 (and remember life insurance is included in the amount they receive).   Each child will receive whatever amount of their $250,000 share is not used up by the time they are 18.  Can you imagine?  Let’s say that ends up being $100,000.  How would you have handled $100,000 when you were 18?  I know how I would have handled it and it’s not pretty.  I read one study that said over half of outright inheritances are spent within 3 years of receiving them – no matter how much was received.
  • If you are a professional and subject to potential liability, make sure you structure your plan in a way that ensures your assets are there to benefit your kids and not lost to lawsuits, creditors and other liabilities.
  • Make sure you pass on your “whole family wealth,” not just your money.  This includes your values, insights, stories and experiences – who you are and what is important to you.  In my experience this is THE most overlooked part of estate planning.  It happens to be one of the most fulfilling privileges I have when working with families.
  • Have a health care directive (patient advocate designation) in place for yourself and your children to minimize conflict about your medical care.

These are just a few of the reasons families with kids under 18 need an estate plan.  Can you think of more?  Please share your thoughts and experiences.

With my next post in the series, I will look at why planning is vital for “professionals” – and you may be surprised how many families are in that group.

Michael Lichterman is an attorney specializing in estate planning and helping provide peace of mind to families and businesses in Grand Rapids, Grandville, Cascade, Forest Hills, Ada, Byron Center, Caledonia, and the surrounding areas.  He specializes in “whole family wealth” planning for professionals with minor children, doctors, nurses, lawyers, and the “sandwich generation” (caring for parents and children) – and does so from a Christian perspective.  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.

Michael Lichterman is an attorney specializing in estate planning and helping provide peace of mind to families and businesses in Grand Rapids, Grandville, Cascade, Forest Hills, Ada, Byron Center, Caledonia, and the surrounding areas.  He specializes in “whole family wealth” planning for professionals with minor children, doctors, nurses, lawyers, and the “sandwich generation” (caring for parents and children) – and does so from a Christian perspective.  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.

What Is Estate Planning?

May 31, 2010 /

Based on some recent conversations, it has become clear to me that there is much confusion about estate planning.  What is it?  What does it mean?  Why do it?  How to do it?  Why work with an attorney?  And many more questions I hear on a regular basis.  So, I’ll be doing a series of blog posts introducing estate planning and its various components.  I don’t know how many posts it will be.   I’m pulling many of the topics from my day-to-day conversations, so I’ll keep the series going as long as there are questions.  If you have questions, please ask! I’ll make sure to work your questions into this series.

So, the first question – what is estate planning?  Wikipedia defines estate planning as “the process of anticipating and arranging for the disposal of an estate.”  I believe a much better definition is one I heard from a colleague of mine from Wealth Counsel:

“I want to control my property while I’m alive, take care of me and my loved ones if I become disabled, and give what I have, to whom I want, the way I want, and when I want.  Furthermore, if I can, I want to save every last tax dollar, professional fee, and court cost legally possible.”

The one item I always add to that definition is: “to make sure that my children are cared for by who I want, in the way I want.”  Of course, this applies only to parents who have minor and/or disabled children.

So here we have the definition, the starting point.  Within the definition are many more considerations.  To accomplish these goals of estate planning, the following documents are commonly used: wills, trusts, general durable power of attorney, and health care powers of attorney/patient advocate designation.  And if you work with a comprehensive Grand Rapids estate planning attorney, there are additional considerations and documents meant to help you pass on your “whole family wealth” – not just what you own, but who you are and what’s important to you!  Because if you think about it, the money and the “stuff” will still be around when you pass away, but it is who you are as a person that will be lost – your values, insights, stories and experiences.  Check back for the next installment in this series to discover some additional considerations that are vital to having a great estate plan for your family.

Michael Lichterman is a dedicated estate planning attorney helping provide peace of mind to families and businesses in Grand Rapids, Grandville, Cascade, Forest Hills, Ada, Byron Center, Caledonia, and the surrounding areas.  He specializes in the needs of professionals with minor children, doctors, nurses, and those in the “sandwich generation” (caring for parents and children), and does so from a Christian perspective.  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.

Traveling Without an Estate Plan – Why Leaving the Stove On Is the Least of Your Worries

May 25, 2010 /

Yep, it’s that time of year again . . . traveling season.  Memorial Day weekend is coming up, the kids will soon be out of school, and the summer travel season will be in full force.  No matter how well we plan, we always seem to forget something before leaving on vacation – or at least think we forgot something.  What about you?  Have you every worried that you left the stove on, forgot to put the garage door down (I always forget that one!), or didn’t lock the door to the house?  I’m sure you have.  Those are some of the common worries.  So let me ask, have you ever worried about what would happen to your children if something happened to you?

Most parents haven’t thought about this, or at least never did anything to take care of it.  Did you know that only about 1/3 of parents have named guardians for their children . . . ONLY 1/3?!  And yet we consider them to be the most precious gift and most important part of our lives (and they are!).  I encourage you to take it upon yourself to put an estate plan in place to make sure your kids are cared for by who YOU want in the way YOU want . . . BEFORE you go on vacation.

I frequently get calls to the office from parents who realize at the last minute that they need a plan in place – sometimes literally a day or two before leaving!  Sadly, it’s often too late to put something in place that is even somewhat thought-out before they leave.  It may go without saying – procrastination is the number one reason I see for families not having the needed legal documentation in place.  I can’t count how many times I’ve counseled caring parents through making these important decisions, and hear “yeah, we’ve been thinking about it for years, but have always put off the step of doing something about it.”

Here are three critically important items to have in place before vacation:

  • Name guardians for your children and make sure it is legally documented – don’t let the court system decide who will care for your children.  Make sure you plan for the long-term AND the short-term.
  • Have a power of attorney for health care and patient advocate designation in place so your family isn’t caught in a bitter conflict over your medical care
  • Have your finances in order so they aren’t lost to taxes or a lengthy court process

Make sure to take these important steps before YOU go on vacation.  And make sure to work with an attorney that specializes/focuses on estate planning for families. If you have questions – ask!  Give me a call, email me, or comment on this post so you can have your questions answered and have some added peace of mind before your next trip.