Nonprofit Offers: Caution! If It Is Free, You May Be The Product

Nonprofit Offers: Caution! If It Is Free, You May Be The Product

By Melinda Gustafson Gervasi

December 10, 2024

Too Good To Be True? As the calendar year comes to a close your inbox and USPS mailbox are likely filling up with solicitations from nonprofit organizations you value and support.  In recent years I have noticed a trend in the nonprofit world, one that gives me pause and raises my eyebrows.  Nonprofits are giving out free, online will programs. The “free will” offers may be tempting, but proceed with caution.  One nonprofit sent me a message that said “in under 20 minutes and just a few keystrokes, you could have a will”.  Sometimes the easy route is not the best route.  To quote President John F. Kennedy:

We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win, and the others, too. 

The easy route may not be the most wise route.  Here are 5 things to keep in mind if you opt to create an estate plan through a free offer from a nonprofit:

1. If you are not paying for something then you are not the customer; you are likely the product being sold.  Before entering your information and wishes into an online platform, you may want to investigate how that data will be stored, managed, and possibly sold to other entities; 
2. Assumptions can be your downfall.  When working with clients, I have them complete a client questionnaire to gather information needed to create a plan.  More often than not, married clients will not list the name of their spouse as the primary actor for the various roles one assigns in an estate plan (agent for healthcare is an example).  It is not because they don’t want their spouse to act, it is because they assume the spouse is automatically granted this authority.  In my home state of Wisconsin that assumption is wrong.  A spouse is not automatically given authority to make decisions. Skipping over the spouse when completing documents essentially cuts the spouse out of decisions; 
3. Procedures in courts can be jurisdictionally quirky.  A Wisconsin will may state “I waive bond for my Personal Representative”, however, the court may ignore that wish and require bond for any out-of-state Personal Representative (called an Executor in other states).  This routinely happens in the county where I practice, yet this is not obvious to the lay person creating an estate plan on their own.  When learning of this practice, I have clients who opt for an instate Personal Representative rather than one residing outside of Wisconsin because the cost and time of getting bonded is an added obstacle in administering a probate;
4. Build in enough contingencies. When asked where you want your estate to go upon death you may answer “to my spouse, and if they are dead to my children”.  However, life can unfold in unexpected twists and turns.  It is good to ask what would happen to a child’s share if they predeceased you.  Would it go to their children if they had any?  Would you rather the share be split between your surviving children? What if your child was married and you wanted the share distributed to your in-law?  It can get complicated quickly.  The more layers you address, the more longevity your will is going to offer.  Free products may not give you this deep level of planning; and
5. Coordinate with your Non-probate assets.  A will distributes your probate assets; those are assets with no co-owner or named beneficiary.  A car or a home are typical examples, but it depends on how the asset is titled.  When you write a will it is vitally important that your beneficiary designations  are understood as well.  If your will says “everything to my children in equal shares” but the beneficiary form on your life insurance lists your sister, the life insurance goes to your sister.  If she were kind and gave those proceeds to your children to honor the intention in your will, she may be responsible for paying the federal gift tax.  The insurance money went to her, and then she was making a gift of it to your children.  The streams by which assets pass and flow can be complicated.  The 20 minute will you got for free for making an annual donation to a nonprofit may not only be insufficient, it may create an enormous headache for your loved ones.

Nonprofits are a wonderful aspect of our society. I admire them; so much that I wrote a book with the title Middle Class Philanthropist: How anyone can leave a legacy to encourage people to include charitable causes in their estate plan.  At the same time, I read email solicitations with a skeptical eye when they are offering free will kits.  Hopefully you will be able to make more informed decisions about these tools if and when you find an offer waiting in your inbox.

Keep in mind that a blog post is not legal advice.  It is meant to spark thought and discussion. Always seek legal counsel from an attorney licensed in your state of residence.  Be well, and thank you for reading.  

Afterlife: Nurture a Good Cause with Your "Stuff"

Afterlife: Nurture a Good Cause with Your "Stuff"

By Melinda Gustafson Gervasi

November 22, 2024

Earlier this month I read a short novel that explored the issues of sudden loss, grief, and human connection.  Afterlife by Julia Alvarez focuses on the newly retired Antonia who suddenly finds herself a widow.  A former English teacher, Antonia routinely pulls quotes and phrases from literature to apply to the situation at hand – and through the course of his novel she faces plenty of challenges.  In the year following her husband’s accidental death she is confronted with a sister in crisis as well as a young undocumented immigrant living on a neighboring Vermont farm who is about to give birth. Personally, while reading a specific passage in Afterlife I too had a quote jump to mind:

 “What we have done for ourselves alone, dies with us; what we have done for others and the world remains, and is immortal”. - Albert Pike

This quote by Albert Pike leaped to my mind when Alvarez described Antonia donating her late husband’s truck to a local charity; “...he lives on, in her choices and in the vehicle’s afterlife”.  One small phrase in the book linked directly to my work as an estate planning and probate attorney, and my 2013 book Middle Class Philanthropist: How Anyone Can Leave a Legacy.  Her husband’s earthly time had ended, but his favorite truck was given to a local charity for a low-income person in need of a vehicle.  Through her choices, his tangible items took on another life.  

Working with my estate planning clients, many toss their hands in the air in frustration – “what am I going to do with all of my stuff! My kids don’t want it.  My friends are as old as me!”  For those seeking an answer about what to do with all the things we have crammed into our homes and storage units, one option is to consider how tangible items may have a life after you are gone.  Turn to a beloved nonprofit as a possible answer. Here are a few suggestions that might speak to you:

• Donate household furnishings to a local nonprofit that helps people get settled into a home after being released from prison, being homeless, or as a newly settled refugee;
• Give clothing to organizations that help people with professional attire who are interviewing for jobs following a long period of unemployment;
• Add books to Little Free Libraries or donate them to public libraries that have book sales to support their services;
• Direct hobbyist or professional equipment to a trade school or school-based program;
• Suggest household plants be given to a low-income nursing home facility to add some cheer to the halls;
• Have a yard sale with no price tags, just donations that will go to a local nonprofit (have information on hand for the organization).

I hope this short list of ideas sparks creativity in your own mind - challenge yourself to find ways for all that stuff to promote something you cherish once your earthly days are over.  Please remember that a blog is not legal advice.  It is meant to spark thought and discussion.  Seek out legal advice from an attorney licensed in your home state.  Thank you for reading, be well, and share this post with others who might find it helpful.

Middle Class Philanthropy: How anyone can leave a legacy

Middle Class Philanthropy: How anyone can leave a legacy

By Melinda Gustafson Gervasi

November 8, 2024 

"Predating democracy, capitalism, organized religion, and as old as humanity itself, philanthropy exists because things often go wrong, and things can always be better". I wrote these words back in 2013 in a small book titled Middle Class Philanthropist: How anyone can leave a legacy.  Eleven years later I find myself pulled back to those sentences.  When life takes a wrong turn, we can lean into our own power and push to improve our world.  

Image by M. Gustafson Gervasi, 2024

At dinner this week my 16 year old son suggested our family add more charity runs to our family calendar.  “Mom, you know that run we are doing in March (2025) to support local refugees ... .are there more like that that we can do?”  My son knows that he can pour his cross country running ability and energy into a local organization to fuel a cause that he views as vitally important.  And so can you.

We are not all runners. We are not all wealthy.  Yet we can all be philanthropists. One chapter of my book opened with the following quote by Douglas M. Lawson, “Philanthropy flows from a loving heart, not an overstuffed pocketbook”.  After nearly 20 years as an estate planning and probate attorney I have worked with countless philanthropists; none of whom have a seven figure net worth.  All of them made a difference in the world they left behind.

November is a month with numerous Philanthropy Day events.  They almost exclusively focus on the common view of philanthropy; the top 2% giving to nonprofits they deem worthy.  Yet that does not have to be the only approach.  No matter the size of your gift, when done strategically, it can have a lasting impact on something you value and hold dear. Read more about every day people who made end of life gifts with a lasting impact in my book.  Simple approaches include naming a nonprofit as a primary or contingent beneficiary as a recipient of a small portion of:

• Retirement Accounts 
• Life Insurance 
• POD (pay on death) form for savings accounts 
• TOD (transfer on death) form for brokerage accounts 
• The residue of your will

Throughout November my blog posts will focus on philanthropy by Middle Class Americans.  Be the change you want to see in the world.

Thank you for reading.  Remember that a blog post is not legal advice; it is meant to spark thought and reflection.  Seek legal counsel from an attorney in your home state for advice specific to your situation.  Be well. 

Don't Forget to Plan for Your Pets: An Estate Planning & Probate Attorney Takes Cats to the Vet

Don't Forget to Plan for Your Pets: An Estate Planning & Probate Attorney Takes Cats to the Vet

By Melinda Gustafson Gervasi

October 28, 2024

Artemis Plays Hide-and-Seek in the Wall Cabinet - image by M. Gustafson Gervasi

Normally my household responsibilities are clustered on nights and weekends, leaving my weekdays available for clients.  Today was not one of those days.  A previously scheduled annual vet visit for two of our four cats was crowded out of my weekend calendar due to my high schoolers’ cross country commitments.  Fall is a busy time in our home.  So, on a Monday morning I threw on casual clothes (that would soon be covered in cat fur), fished out the cat carriers, and wrangled the twins in record time.  Cages secured, we piled into my car and headed south on Highway 14 to our vet clinic.  Both cats received clean bills of health and I had a nice chat with our veterinarian, someone I have known since we were in high school together.  The excursion was uneventful.  And for that I am thankful.  However, I am also prepared for challenging times.

Cats have been a part of my home my entire adult life.  As an estate planning and probate attorney, I have also taken steps to make sure the care of our furry family members is not compromised should I die or be too sick to care for my cat crew.  My estate plan includes a pet trust, which is more common than you might think.  I also have a Power of Attorney for Finances that explicitly grants my agent to make financial decisions regarding my pets.  

A pet trust is a tool that transfers ownership of any pets you own at death (legally pets are considered your property) as well as some cash funds.  The trust holds the pets and the cash, which is used by a trustee you appoint to pay for vet bills, grooming, food, medicine, etc.  My trust even says where any unused funds should be donated when the last of my pets dies.   But what if I do not die?  What if I am alive but too sick to manage their care?  Under my Power of Attorney for Finances I have included language so that my agent (first my spouse, second a local bank) can secure lodging, vet services, etc., if I cannot.  Having practiced estate planning and probate for nearly 20 years, I am aware that what used to kill us immediately no longer does.  We may survive, but not in a capacity to resume our prior habits and to live independently. 

Estate planning boils down to taking control of who will do what when you no longer can.  For all of my fellow pet owners out there, please do not overlook making plans for your feathered and furry family members.  Even if you do not have the time or financial resources to create the documents described here, take a few minutes to leave notes related to your pet companions.  Any amount of organization can be a gift in the event of a medical crisis:

• Name, location, and contact information for your veterinarian
• Name and contact information for pet sitter(s)
• Information on pet health insurance if you carry it
• Instructions for feeding, especially if prescription food is needed
• Instructions and location of medications
• Grooming schedule, including contact information for any professional service you use
• Name and contact information for short-term and long-term caretaker for your pet if you are in the hospital or care facility for an extended stay
• Notes on any subscription deliveries for food or supplies that are auto filled and delivered

 Please note, a blog is not legal advice.  It is meant to spark thought and reflection.  Please consult an attorney licensed in your state for counsel specific to your situation.  Thank you for reading.  Please share with others who might find this piece helpful.  Be well!

Decluttering! The Overlooked Aspect of an Estate Plan

Decluttering! The Overlooked Aspect of an Estate Plan

By Melinda Gustafson Gervasi

October 22, 2024

Cross Country Meet, Image by M. Gustafson Gervasi 2024

Confession, I am a competitive person.  Challenge me to something (within reason) and chances are I will bite.  Connect the challenge to decluttering my home, and you are guaranteed I’ll jump at the opportunity.  That was the situation late this past summer.  A dear friend posted a Facebook challenge for the Minimalist Game, and she tagged me.  Having played this game a few years ago, there was no hesitation.  I accepted the challenge; game on!  We were going to spend September purging items from our homes.  

The game starts out easy, on the first day of the month you purge one item from your home.  On the second day you re-home two items.  On the third day of the month, you remove three items. And it goes on throughout the month.  While it may start out easy, the game gets harder and harder as the number of daily items increases.  How do you get rid of 24 items one day and 25 the next?  Tossing an item into the trash becomes the obvious and most tempting option.  However, I am both highly frugal and concerned about overflowing landfills. I forced myself to seek out other options before adding an item to the garbage bin.

As an estate planning and probate attorney I regularly hear clients ask “how do I make my death as easy as possible on my family?” My answer is always to be as organized as possible.  And in the quest to be organized, consider a purge.  To be realistic one day you are either going to move, and move all of your things.  Or you will die, and someone else will move all of your things.  The fewer things you have, the easier it will be. So do not put off until tomorrow something you can do today, clear the clutter!  It will be a gift in the end, either or yourself or to your loved ones.

For our September game my friend and I modified the rules to reflect our busy lives.  We let go of the rigid requirement of on day 1 you purge one item, day two you purge 2, etc.  Instead we calculated the sum total of 1 to 30, which tolated 465 items.  That was our goal.  Next, we created a spreadsheet on Google Sheets and shared it with each other.  Kudos to my friend, she achieved her goal.  I however did not.  Life got in the way.  Too busy with work.  Then too busy with school events for the kids.  And then I just needed downtime to rest.  If I cannot remove 465 items from the very home I live in when I am operating under a normal schedule (not one driven by grief or urgency), then how will your loved one fare?  I did remove 350 items.  Here are some tips I can offer from my own experience:

• Have an accountability buddy – in this case my friend could see my progress (or lack of progress) on our shared Google Sheet.  We also texted one another pictures of car trunks filled, headed to the thrift store.  Get a buddy for this activity, it is a chore made more fun with a friend. 
• Document your progress.  A simple spreadsheet with a tally was a great way to stay aware of what progress I had made, and when I had started to stall.  It’s hard to ignore numbers.
• Give it away via Porch Pick Up.  Use social media to post pictures of what you are looking to re-home and set it out for pick up on your porch.  I am amazed at how quickly some items are snapped up. One person’s trash is another person’s treasure.  For example, September 1st I met a lovely neighbor who was delighted to take a bottle of whipped rum I pulled from the back of a cabinet.  It had sat on our shelf from a party long ago, and was not a taste my husband or I enjoyed.  A picture posted to our neighborhood’s Facebook page found it a new home in under an hour!  Hauling items away is a job in and of itself; use porch pick up and people will do the hauling for you! 
• Find a program with small children to take things you cannot recycle.  Whether it is your local elementary school, city library, or church youth group, these programs can turn old holiday cards, plastic straws and assorted belongings into art projects for kids.  It may one day end up in the landfill, but its life will be extended and that youth program won’t have to spend money on supplies. 
• Donate to a thrift store that supports your values.  In our home the go-to donation pile is for the Dane County Humane Society Thrift Store.  We are a cat family.  A four-cat family.  Yes, we have 4 felines in our loving care.  Which means we are at our limit….we cannot help another cat by opening our home.  We can however open our closets, cabinets, and drawers to purge items that are gathering dust.  My teenagers warmly embrace letting go of possessions when they know it might be sold at the thrift store, which uses the revenues to support the mission of the Dane County Humane Society.  What is your passion?  
• Do not put off purging for a rainy day.  If you have piles of plastic deli containers you might use one day, give them away now for someone who can use them now.  Chances are you won’t remember where you stashed them, and then you’ll find them 2 years later.  We live in a society that allows us to buy anything we need with a few simple keystrokes, and have it delivered to our doorstep.  If you think you are saving money by holding onto things, remind yourself you are paying money to store all of these collections.  Space is not free.  We all pay per square foot – in rent, or mortgage payments, or on lost investment dollars.  

Cold Kentucky Rain - Image by M. Gustafson Gervasi 2024

We are well into October now and the Winter Holidays are coming up quickly.  I plan to set another small purge goal for now until December 1st.  Dear Reader, you are my accountability buddy now – my challenge is to purge another 200 items from our home.  That is 50 items per human.  It can be as small as a notebook or as large as a piece of furniture.  Check back in December to see if I have any more lessons to share on the topic of decluttering.  It is an often overlooked aspect of estate planning.

Follow my blog!  Enter your email address above (upper right) to receive alerts for new posts.  And share this post on social media with those who might benefit.  And as always, remember that a blog is not legal advice.  It is meant to spark thought and reflection.  It is best to seek legal advice from an attorney licensed in your home state.  Be well and thank you for reading. 

 

A Lesson From The Bard On Estate Planning

A Lesson From The Bard On Estate Planning

October 14, 2024

By Melinda Gustafson Gervasi

Red taillights sprawled in front of us as we headed east along Wisconsin’s Highway 14.  It was after 10pm on a Sunday evening, and we were one of the many couples who had made the annual journey out to American Players Theater in Spring Green, Wisconsin.  As the road entered into the more populated suburbs it widened into two lanes and my breathing eased just a bit, as it always does when I leave a highway known for its deadly accidents.  High speeds, deer running about at night, and an undivided highway make for a tense drive.  Especially having just watched King Lear; a play where nearly every character dies in the end.

It was a night out for my husband and I.  Our teenagers were at home, focused on their homework with a simple pasta dinner.  Yet, sitting there under a night sky dotted with stars, my mind could not quite relax into the moment.  Instead it dashed about, just like the bats flying around the stage lights at this picturesque outdoor amphitheater situated in the woods of South Central Wisconsin.  As the three act play unfolded, my work brain kept kicking in.  I’ll blame Shakespeare...

The Stage at APT - Image by M. Gustafson Gervasi 2024

King Lear may have been written in 1604, however, it’s full of modern estate planning concepts.  It opens with the King directing his three daughters to state their love for him.  Two daughters comply, professing their love and devotion in front of an audience that senses their deception.  Lear’s third daughter, Cordelia, refuses to engage in such behavior and remains silent.  Her silence causes Lear to fly into a rage.  He banishes Cordelia and divides his kingdom between his other two daughters, Goneril and Regan.   Listen closing and you will hear the words of my profession: heir, issue, perpetual, and disclaim.  You will also witness the pain and suffering a parent may experience when they relinquish control of their assets to dishonest children.  Lear’s plan failed to unfold as he hoped, and he found himself descending into madness while wandering around in the middle of a horrible storm. Oh King Lear, why did you not consult your lawyer first!

If you would like to minimize the level of Shakespearian drama in your own estate plan, avoid copying King Lear.  Quite simply, do not make a plan when you are emotional.  Here are three simple ways to keep the emotion low, resulting in a sound estate plan that you will be content with:

• Gather information on your family, assets, liabilities and goals.  At my office I accomplish this through a client questionnaire.  The form helps my clients capture information and feelings about their estate plan.  
• Sketch out a draft of your plan, then pause to reflect on how it feels.  With my clients we meet initially to review their questionnaire and determine what documents they need and what the forms should say in order to accomplish their goals.  This meeting is followed by a second meeting held a week or two later.  Then I walk them through the forms paragraph by paragraph.  They can ask questions, and they can make edits.  It is the perfect time to dial back the emotion and drama a hastily made plan can generate.  
• About 10 to 14 business days later, finalize your estate plan by executing it in the presence of witnesses (each state in America has its own witnessing requirements – make sure you follow the correct laws).   

In play parlance, this would be three acts.  One, setting up the situation by gathering your thoughts and goals on estate planning.  Two, rising action where you see those thoughts on paper and decide whether to move forward or get out the eraser.  And three, the resolution of the situation by ending with a legal execution of the paperwork.  

Thank you for reading.  Keep in mind that a blog post is not legal advice.  It is meant to spark thought, reflection and conversation.  Always consult a licensed attorney in your home state for advice specific to your situation.  Be well and may your estate plan end in a less tragic way than King Lear's.

Want a Stellar Estate Plan? Have These 4 Conversations!

Want a Stellar Estate Plan?  Have These 4 Conversations! 

September 23, 2024

By Melinda Gustafson Gervasi

Image by M. Gustafson Gervasi, 2024

September is National Preparedness Month, which aims to remind the general public about the importance of being ready for disaster and emergencies.  In 2024 there is a specific theme, conversation.  The title “Start the Conversation”, is a campaign that nudges the public past its resistance about addressing potential risks and dangers. It encourages the public to have regular talks with loved ones about how to handle emergencies. While the focus of National Preparedness Month is on natural disasters, such as floods and hurricanes, the motivation fits well in my focus area – estate planning and probate.

Estate planning is the act of creating documents that state who should act if you are alive but too sick to make decisions about our health care as well as finances, as well as, who will handle your final affairs.  Moreover, an estate plan directs where your assets will go after death.  Illness and death are a given for all of us; it is not a question of “if”, but a question of “when”.  A sudden illness that leaves you incapacitated or an untimely death can rock the ground of your loved ones much more severely than an earthquake.  It will happen, so be prepared and take action now while you have the opportunity. 

Whether you are creating a plan for the first time, or you are updating an out-of-date plan, or you are looking to enhance your current documents, here are 4 conversations that will elevate your plan to A+ standards:

1 - Talk with yourself and get real with your situation.  None of us are immortal.  Illness and death will find us all, so act while you are able and take control over who you appoint to make decisions when you cannot.  Be honest with yourself and nominate people who have the skill-set to manage health care decisions, financial matters, and the assortment of final affairs tasks (filing taxes, making funeral arrangements, cleaning out your home).  

2 - Talk with your money people.  From your financial advisor to the benefits manager where you work, to the retirement office for your investments or pension – it is crucial you communicate with these people to confirm what you own and what happens to those assets or benefits upon your death.  Do not assume you know, confirm it. While we live in a digital age, I personally prefer a piece of paper to keep in my 3-ring binder that serves as an easy to access roadmap to those I’ve put in charge.  It is likely to be far easier for the person you appoint to open a binder you create than your phone, computer, email, etc.

3 - Talk with the people you appoint to act on your behalf.  When you nominate another person to make your health care and financial decisions when you are too sick to act, or appoint someone to handle your final affairs at death, talk with them about your wishes and preferences.  Even better, put those thoughts in writing. A simple letter with bullet points can be a lighthouse in the fog to someone who is not only grieving, but also making decision after decision in the wake of your death. Check out another post I wrote specifically on what to include in such a letter, click here.

4 - Talk with the caregivers you name in your paperwork.  For those with minor children, the legal way to nominate a guardian of your children is via your will.  Give great consideration to who nominate. Who shares your values on education, religion, money, and day-to-day habits? If you have teenagers, you may want to ask them for their opinion on naming a guardian.  Also, do not overlook your four-legged or feathered dependents - pet owners should also consider a plan for their animal companions in case of a prolonged hospital stay or death. Make sure these caregivers know the pattern of your everyday life in regards to your child(ren) and or pets: medications, allergies, schedule, and contact information for the organizations in their orbit (such as a school, day care, medical office, etc).

Now you have a blueprint for conversations that will elevate your estate plan.  It’s time to take action. Fall officially arrived in the Northern Hemisphere at 7:43am, Sun, Sep 22, 2024.  Here in Madison, Wisconsin, where I live, Mother Nature delivered a cold front with plenty of rain, wind, and cooler temperatures.  It’s the perfect time of year to pour a cup of hot coffee (or tea or cider) and start talking.  

Image by M. Gustafson Gervasi

Thank you for reading, and please share this article if you found it helpful.  You can also “Follow” my blog; enter your email by clicking Follow in the upper righthand corner to receive a message when a new piece is posted.  Remember that a blog is not legal advice. Rather, it is intended to spark thought and reflection.  Be well and thank you for reading.