Tag: Estate Planning

Asset Protection Planning for Physicians

July 18, 2010 /

Growing up with a mom who has worked in the medical field for over 35 years, I know of the sacrifice and struggle that Michigan physicians face on a constant basis.  They are constantly targets of malpractice lawsuits as well as other legal actions such as employee lawsuits for sexual harassment, unfair termination and discrimination; and business and practice-related litigation.  And it seems that Physicians are targeted for every ill-conceived investment idea.  Yet they sacrifice their time and expertise to help care for others.  It is truly a noble profession.

Do they deserve to be in these cross hairs?  I sure don’t think so.  That’s why I’ve been working on better serving physicians and their families.  Contrary to what many believe, asset protection planning is not all about offshore trusts and Swiss bank accounts.  It is about adopting advanced planning strategies that legally place assets beyond the reach of creditors, discouraging lawsuits by lowering a physician’s financial profile so that they become a far less attractive target, and enhancing leverage in negotiations if a lawsuit is filed.

Know that although asset protection planning is confidential, it is NOT based on secrecy or fraudulent transfers, does NOT involved hiding assets and is NOT a tax dodge.  Professional and personal convictions don’t allow such unethical (and potentially illegal) methods.

It is important for Michigan physicians to work with an estate planning attorney who is both well versed in these advanced planning strategies AND can understand the threats Michigan Physicians face and the constantly changing environment in which they work.  Are you a Phyisican or do you know a Physician?  Please share your thoughts.

Michael Lichterman is an attorney specializing in estate planning and helping provide peace of mind to families and businesses throughout Grand Rapids and West Michigan.  He specializes in Whole Family Wealth™ planning for professionals with minor children, doctors/physicians, 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.

Why Estate Planning Is Especially Important for Women

July 11, 2010 /

I love perfect timing!  I read through a recent blog post by Danielle G. Van Ess, a colleague of mine and fellow Wealth Counsel member, that fit right in with my ongoing blog series introducing estate planning.  I started the series by looking at how critically important estate planning is for various family types and situations such as parents with minor children and professionals.

Well, Ms. Van Ess recently wrote a blog post on how vital estate planning is for women (read it here) based on a Forbes.com article.  I strongly encourage you to read her post and the Forbes article – the information is too vital to pass up.  Although Massachusetts and Michigan laws may differ, many of the concepts mentioned in the articles are the same.

I won’t rehash the post or article here, however I do have a couple of thoughts to share:

  • The importance of adequate life insurance on BOTH parents cannot be overstated.  The vast majority of families  I meet with are under insured by any measure.  And I typically find that mom is more likely than dad to be under insured.  Ms. Van Ess points out the importance of life insurance for stay at home moms.  Just think dad – if something happens to mom, you are doing to have to stay home with the kids, hire in-home help or pay for daycare.  How would that financial change affect YOUR family?  Talk to your life insurance agent or financial adviser to make sure you are adequately insured.  If you would like suggestions on who to contact, just let me know.
  • Don’t underestimate your importance in putting a plan in place for your family.  I can count on one hand the number of times we’re contacted about estate planning by dad.  It is almost always mom.  You play a vital role as the key decision maker for planning.  Make sure the decision of how you plan and who you work with is the best for your family.

Do you have stories to share about the importance of the estate planning for you and your family?  For your mom, sister, aunt or friend?  Please share.  I always enjoy hearing about others’ experiences.

Michael Lichterman is an attorney specializing in estate planning and helping provide peace of mind to families and businesses throughout Grand Rapids and West Michigan.  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.

A Family Mission Statement Can Help Any Family

June 30, 2010 /

This is a guest post from Ron VanSurksum, CFP originally posted on his blog here and reproduced here with his express permission.

A Family Mission Statement Can Help Any Family Manage Assets, Philanthropy and Direction

A family doesn’t need a surname like Vanderbilt to benefit from a family mission statement.  A mission statement is a collaborative document created by one or more generations of family so standards and goals can be set for the handling of all family assets, including businesses and philanthropy in particular.

While mission statements aren’t legal documents – in fact, many are done both in written form and on videotape as a companion to legal wills and directives –  their purpose is to make a record of the family’s values, goals and aspirations and how those sentiments should drive future decisions about family wealth management, business succession plans and charitable pursuits.  Multi-national companies have mission statements. Non-profit corporations have mission statements.  A mission statement for your family, helps identify and clarify specific values and goals, facilitates group decisions, instills confidence and encourages unity.

It should also identify family leadership who will work with other relatives in implementing those goals.

While the end product should produce a document built from discussion, argument and consensus, it’s not so much about the piece of paper as the process. Many families start the process as a way to build consensus about long-term financial, business, estate and philanthropic goals, but the conversation can take twists and turns that don’t directly involve the family money. In this process, a family can identify the strengths, weaknesses and unearthed priorities of all family members and might reveal leadership few had expected.

Trained financial advisors including financial planners, tax experts and estate attorneys, can help explain the process and set an agenda for families to follow in creating the mission statement. While some extended families may elect to bring in a facilitator to guide their process, there are generally four components to a family mission statement – estate issues, philanthropy, business planning and family dynamics in general.

It also helps to start with some questions that can guide the discussion.  Many experts start with questions that first get family members talking about their relationships and how their dynamics work, and then move into business and money matters.

  • What’s most important about our family?
  • What do you think our goals should be?
  • When do you feel most connected to the rest of us?
  • How should we relate to one another?
  • What are our strengths as a family?
  • Where do you think we’ll be as individuals in 5, 10 and 15 years?
  • In order, what are the five things you value most in life?
  • How should we behave toward each other?
  • How should we take care of relatives who are or become sick or disabled?
  • How should we resolve our disputes?
  • How important is the family business to you?
  • What should we be doing differently with our family money as well as our assets inside the business?
  • What professionals or structures should we bring in to help us manage our wealth?
  • What’s the best way for us to be building our wealth?
  • What do you think the role of our family should be in helping the community?
  • What should we be doing individually and as a family with regard to philanthropy?

Structurally, the written mission statement can be whatever you agree it should be – most experts say it should be no more than a paragraph long, but that’s a guideline, not a rule. It is also very important to focus on the positive, meaning what you want to accomplish and achieve as a family, as opposed to want you want to avoid. And it needn’t be set in stone – a family should have a meeting every year or two to revise or approve its mission.  The family mission statement helps a family establish its identity and the variety of voices within, and those voices may be subject to change over time. The family mission statement is a living, breathing document that can evolve over time. In today’s fast paced world, it is easy to get caught up in the here and now, a family mission statement can help you stay true to your family’s values. As a result, families may not feel the pressure to keep up with the Joneses because their mission  statement helps achieve balance. It is also very important to focus on the positive, meaning what we want to accomplish and achieve as a family, as opposed to want we want to avoid.

The right mission statement can help reset goals and diffuse tensions later. It can also be used to moderate discussions that inevitably happen after major changes within the family – death, divorce or happily, an increase in the number of heirs and participants.

As for the age of the participants, it can start in very basic form with younger children and the process can mature as they age. It’s actually a good idea to bring young members into a customized version of the process for youngsters so they can comfortably adjust to working as adults with the older members of the family.

For additional resources on how to create a family mission statement, please consider utilizing any of these websites

http://www.nightingale.com/mission_select.aspx?from=homepage&element=missiontitle

http://www.ehow.com/how_2043790_write-family-mission-statement.html

http://www.franklincovey.com/msb/

June 2010 — This column is produced by the Financial Planning Association, the membership organization for the financial planning community, and is provided by Ronald J. VanSurksum, a local member of FPA.

Why You Should Care About Estate Planning: Professionals

June 13, 2010 /

Moving along in my Intro to Estate Planning series, we will continue to look at why planning is important for  family of different types and at different life stages.  I started by uncovering the many benefits estate planning holds for parents with children under 18.  If you are a parent with children under 18 years old and still have questions, contact me to have your questions answered.

The next group we’ll look at is more of a “type” of family rather than a stage of life: professionals.  My definition of a “professional” is broad, including doctors, lawyers, certified public accountants (CPAs), accountants, bankers, financial advisers, nurses, teachers, middle- to high-level company managers, CEOs, company Presidents, and other similar positions.  I view this group so broadly because they all share similar concerns, at varying degrees.

Some important reasons proper estate planning is critical for professionals (and their families) include:

  • Guardianship remains one of the most important reasons to estate plan if you have children under 18 years old.  Without designating who you want to raise your children in your absence, a court will decide who will care for them. If you haven’t named guardians for your children, you should run, not walk to an attorney specializing in estate planning (and focusing on guardianship decision).  If you have named guardians, you most likely made at least 1 of 6 common mistakes.  Contact me to learn more!
  • Asset Protection. As a professional with a special skill, you face a greater threat of liability.  You have worked hard to accomplish great things and are building a secure financial future for your family.  Don’t leave it exposed to future divorce, lawsuits and creditors.  And this pertains as much to you as it does to your children and grandchildren (and on down the line).  You can pass your financial wealth on to them protected from divorce, lawsuit and creditors as well.
  • Planning for your incapacity to avoid bitter conflict about your finances and your health care. You need to give people you trust the legal authority, guidance and direction on how to handle your finances and your health care.  Enhanced Powers of Attorney, EnhancedPatient Advocate Designations, and Living Trusts are key components to making sure your wishes are recognized and followed.
  • Avoiding probate.  Without a proper plan in place, your hard earned wealth will go through a time consuming and often costly court process. Wouldn’t you rather your family be able to benefit right away and receive more of what you worked so hard to accomplish?
  • Passing 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.  The professionals I’ve worked with have accomplished a lot and continue to reach new levels of accomplishment.  Yet in most circumstances they have not taken the time to explain their struggles, how they overcame, and what they learned – these are far more important than money to their kids, grandkids, and future generations.

These are just a few of the reasons professionals 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 the “sandwich generation” – people who have concerns about their parents and their children.

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.

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.

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.

The Cheap, Online Will – A Real Life Example

May 11, 2010 /

Ok, you just have to read this post from Gregory Luce.  He is in the process of evaluating the differences between an online will and one drafted by an estate planning attorney.  He gives a very fair, well-reasoned analysis of the document and “extras” along with it – the positives and the negatives.  As can be expected, there are flaws in the document.  I encourage you to read the comments at the bottom of the post as they point out many areas of concern.  Some of the items could cause the “effect” of the will to be drastically different than what Mr. Luce intended.

Of course I made sure to add my $.02, which centered on the wholly inadequate guardianship provisions.  I regularly refer to 6 common mistakes that parents make when naming guardians for their children and most, if not all, of them show up in this situation.

Read the post, read the comments, and then let me know what you think.  Sure, it may be less in the short run to do the cheap online will and have the misplaced peace of mind it provides.  But at what cost?  Disinheriting a child?  Having someone challenge it and win?  Having someone taking care of your children who you would never choose . . . or not in the order you would choose?  I look forward to your comments!

Make Your Heirs Rich, Not Your Lawyer

May 7, 2010 /

Say what?  Yes, you read that right.  It is the title of an article I read at the Motley Fool (read it by clicking here).  The main focus of the article is how you want to be remembered after you are gone and how your estate planning (0r lack thereof) can greatly influence your legacy.  They put quite an emphasis on wills, which is interesting because many of the more complex situations the article talks about are far better handled through a trust.  And in some of the examples, a will is almost completely inadequate.  I would also suggest that you review your plan every 3 years, at a minimum, rather than the 5 suggested by the article.  Think back three years and ask yourself how much the law, your life, and what you own has changed.  Those items change on a regular basis – so should your plan.

I’m happy to see them mention estate planning in the context of disability planning.  This is often overlooked . . . sadly, even by some lawyers.  Estate planning is not just “death planning.”   It is more than that . . . it is ensuring that the right decisions are made on your behalf if you are unable to make them yourself due to incapacity or disability.

What do you think about the article and the issues raised by it?  Please feel free to share – I enjoy reading and responding to the comments and emails.

Be Careful Who You Pick As A Trustee

May 4, 2010 /

Although statistics show that the number of people who have an estate plan is not increasing, I do see a larger portion of individuals and couples making the decision to have a trust-based estate plan.  That is, an estate plan where a trust is the main document that controls how things are distributed when they pass away.  One of, if not the, most important decisions you make with a trust-based plan is who will be the trustee and who will be the backup (“successor”) trustees.  The trustee is the person/people/entity that makes sure the terms of the trust are followed.  Depending on the trust’s design, the trustee may have a large amount of discretion on who receives money/property from the trust, how they receive it, and when they receive it.  Yet, in many cases, the decision on who will be the trustees/successor trusties is made hastily, without much thought.

This can be a big mistake!  If you have done your planning correctly and fully “funded” your trust (e.g., transferred assets to it), your trust will have most (if not all) of your assets.  Considering that the trustee will make certain decisions relating to the trust, the choice should not be taken lightly.  The trustee should be someone you trust (no pun intended . . . ok, yes, the pun was intended).  However, don’t stop the inquiry there.  It should also be someone who has sufficient financial management and administrative ability (or is wise enough to hire professionals to handle those tasks for them).  And consider the option of splitting the trustee role  among one or more people/entities.  For example, you could have a “distribution trustee” who determines when to make distributions, and an “administrative trustee” who keeps track of all the accounting, tax, and other detailed financial matters.

I recently had a conversation with a great client.  She shared with me that her father had a trust set up and properly “funded” (I say bravo to him, because not “funding” the trust is the single biggest mistake I see when reviewing estate plans).  He named a local bank as the trustee for distribution and administrative purposes.  He set out several scenarios in his trust about how he wanted to provide for his children (education, businesses, homes, etc.).   One of the main assets in the trust was stock in a certain company.  Long story short, the stock dropped significantly in value and the trustee (the bank) would not sell it.  It believed the stock would come back and that to sell it at the depressed price would violate the bank’s duty as trustee.  This all happened about the time this client was supposed to be getting a distribution to help with education.  She never did get the distribution for education (or much else for that matter).  The good part is that she did a great job on her own and is quite successful today.

I’m not saying you shouldn’t consider a bank or trust company as a trustee, I give the example to show how important it is to fully consider the various options for who the trustee is.  Each situation is different.  That is why you need to make sure your estate planning attorney takes a client-centered relationship approach to your planning . . . not a transactional approach.

What’s So Bad About Probate?

April 25, 2010 /

The short answer – maybe nothing, maybe something. Whether probate is “bad” is a case-by-case scenario specifically based on what is most important to the individual or family who has no estate plan or who has a will-based estate plan.(or worse, a trust-based plan that was never “funded!”).  But Mike, I thought a will bypassed probate.  That is a common misconception.  A will does not bypass probate . . . a will guarantees a probate.  The will must be probated for it to have any effect.

Ok, that was an aside – back to the topic at hand: probate.  Like I was “saying,” your most important goals and objectives will determine whether or not probate is a “bad” thing for your situation.  Here are the most common complaints I hear and which I am routinely asked to help avoid:

Time consuming: probate can be a very lengthy process.  In my experience, the average probate in Michigan lasts a minimum of 6-9 months (except for very small estates).  I rarely, if ever, see the process take less time than that.  I do routinely see it take longer than that.  And the number one thing I’ve seen cause it to drag on longer (sometimes years!) is conflict.  Conflict among any one of several people, whether it be a case of multiple personal representatives (e.g., executors), between a personal representative and a beneficiary or beneficiaries, or someone who “didn’t get what they thought they had coming,” and they want to challenge it.

Costly: probate can be costly.  In my experience, the average cost is somewhere around 3-5% of the probate estate.  That estimate includes everything that could be a cost associated with the probate: probate fee, attorney fees, appraisal costs, bond premiums, CPA fees, filing fees, etc.  For example, let’s say you have a probate estate of $500,000 (not hard to get to if you include real estate, retirement, and other assets).  5% of $500,000 is $25,000.  That’s a decent “chunk of change,” that many people would rather have going to their family.

Public: probate is public.  I’ve had several people request that I “look into” an estate for whatever reason.  Simple enough.  I go to the county courthouse, go to the probate clerk, give them the name of the person who passed away, and they provide me the file (if a probate has been started).  I can look through everything: who the personal representative is, an inventory of the assets, the will (if there is one), what the final distribution (e.g., accounting) was, and more.  Anyone can look at the file.  So, imagine that you have a young child.  You (mom and dad) both pass away and your estate goes through probate.  The estate is put into a conservatorship estate for the benefit of your child and it will be paid outright to your child when he/she turns 18.  The entire thing is public record.  Not only is your child getting the entire amount left of the estate, but there could be less-than-trustworthy people who also know what amount he/she is getting because they’ve been monitoring the probate file.  Whose to say they won’t take advantage of that opportunity.

The good news is that you can plan around all of this by meeting with an attorney who focuses on estate planning – specifically one who does so on a relationship model, not a transactional one.  Someone who will really learn about who you are, not just what you have, so they can work with you to determine what YOUR most important goals and objectives are and create a plan that meets them.

The Game Is On: Billionaire Dies – Stakes Raised On The Estate Tax Issue

April 20, 2010 /

As mentioned in this article over at The Trust Advisor Blog, the stakes are now raised on what Congress will do about the estate tax as a billionaire recently died.  With no estate tax in 2010 (as it stands now), it seems he may have passed his $9 billion (with a “b”) estate to his heirs completely free of estate tax.  If last year’s estate tax rules were still in effect now, the IRS could have collected roughly $4 billion (with a “b”) in estate tax on the estate.

As the article points out, it must be awfully tempting for Congress to reinstate the estate tax in 2010 at its 2009 level and, they say, make it retroactive to the first of the year.  I have to imagine that, given the amount of money at stake now, any attempt at retroactively enacting the estate tax would be challenged tooth and nail by an army of lawyers on Mr. Duncan’s behalf.  It will be very interesting to watch, that’s for sure.  I’ll make sure to keep you updated as I learn more.