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Image credit: www.sxc.hu - free image (yellow moon) October 31st has arrived -- Happy Halloween.  As you prepare to take your little goblins and witches (in my case a pirate and an owl) for an evening stroll to collect candies, or you prepare a bowl to keep near your door for the little ones posing the question trick or treat, don't forget the coins.  Yes, Halloween is most prominently associated with candy corn and other sweet treats, but it is also a day when children can make a difference in the lives of children with less advantages through the UNICEF program.  Created over 60 years ago it is a long-standing charitable program.  Enjoy the fun, and consider what you might be able to do to put more treat and less trick into the lives of children around the globe.  One not need be a billionaire to make a difference in the world.

Image credit:  www.sxc.hu - tax papers, free image Ask a lawyer a question, and you'll likely get an answer along the lines of "it depends".  And that is the case for the question of whether Wisconsin's state estate tax will return in 2013.  As I write this post, we can only guess about what will happen, and here is why. First, an estate tax is a tax levied upon an estate when a person dies with a net worth in excess of an amount set by a legislative body.  There is a Federal estate tax, with an exemption level set by Congress.  And then each of the 50 states can elect to implement their own state estate tax. Second, Wisconsin used to have an estate tax, but it ended as of January 1, 2008.  Its end was based on state legislation linking its tax to the credit allowed on the federal estate tax return for taxes paid to a state.  Current federal estate tax exemption levels are $5 million per individual; if a person has a net worth lower than $5 mi...

Image credit:  www.sxc.hu - free image (gift boxes) When speaking to groups on issues related to illness, death and taxes for the middle class, I spend more time on matters related to gift taxes than I do the federal estate tax.  The reason is simple -- the gift tax applies to more middle class homes than the estate tax does. The gift tax is a tax owed by the person making the gift if the amount exceeds the annual exclusion for the year (in 2012 it is $13,000 per person per year).  However, there are transfers that may give the appearance of a gift, but are not taxable according to the IRS.  Three of them are: Transfers to political organizations (as defined in Section 527(e)1(1) of IRS code); Transfers for education, excluding costs for books, supplies, dorm fees or board, as well as contributions to 529 plans; and Transfers for medical expenses (care must meet the same requirements as the income tax deduction). Now remember, a blog is not a lawyer s...

If you are like most people, in your wallet or brief case you likely carry a frequent flier card or some sort of loyalty program.  And given the kind of work I do, a natural question is what happens to those "points" when you die?  Of course, being an attorney my answer is "it depends".  As recently covered at a recent continuing legal education update it was shared that the distribution of these assets vary, and depend on the terms of the contract created by each company.  But, there is an article available on the web (dated 2011) that covers some of the big ones.  Do you use a beneficiary form?  Does your will control?  What if you die without a will?  If this seems trivial, pause and reflect on the fact that it is estimated that members are estimated to be holding approximately 3.5 trillion unused miles.  That is a lot of miles to pass without a little though and reflection. Even if you do know what will happen (they pass via will) in...

Yesterday and today I have been attending the annual CLEW Tax Law update in Madison.  A day and a half packed with tax concepts, code citations, and esoteric terms.  For the registration fee I walk away with the following three pearls of wisdom, which anyone can benefit from in the world of estate planning and probate: File things on time, and avoid creating a questionable issue the court will have to decided (i.e. is priority mail the same as certified mail; the answer in the eyes of Wisconsin's Department of Revenue is no); Read the entire trust (or insert the name of any legal document; will, contract, form, etc.); and Keep it simple -- the most elegant solution to problems does not require brilliance, but rather appreciation by the government employees reading the legal forms created. Nothing profound.  Concepts available to all, not just those with a multitude of letters after their name.  Common sense, but often overlooked.  I am thankful for the w...

I am only five minutes in to the annual CLEW Tax Law workshop, and I've already received a great bit of information.  Wisconsin's Department of Revenue offers the option of receiving email updates on various areas of tax law.  From "tax professional" to "sales tax", you can plug in your email and get updates as they are published.  I've signed up, and so can you by clicking on the DOR's web site .  Stay informed, it is powerful.  And thanks for reading.  Feel free to share links to other useful tax law update sources if you have one.

The forecast for Madison tomorrow predicts partly sunny and 76 degrees....on October 24th!  Of course I am scheduled to be in a day-long seminar on tax laws.  There will be no Ferris Bueller day for me, as there apparently will be for a fellow probate attorney living down in Chicago (according to her Facebook post).  No, I will be in class....all day. Yes, even attorneys return to the classroom.  Once we are handed a diploma and admitted to the bar, we are still required to attend 30 hours of continuing legal education (CLEs) every two years.  And every fall you will find me enrolled in the CLEW Tax Workshop, presented by the Wisconsin Law School .  A day and a half of jammed packed tax fun, and for a great value. And if you feel bad for me being stuck inside all day, there is no need.  It could be worse....my husband has to take continuing education for his professional engineer stamp (electrical).  And his classes have quizzes.  Ours ...

NPR ran a short, but well-done story on the rhetoric surrounding the federal estate tax.  As the campaigns race towards a finish line, I am not surprised to see discussion of the estate tax emerge.  Feared by many, but paid by very few, it is yet another example of people playing off of other's lack of knowledge ( "I will save you from this tax....even though you are not likely to have to pay it" ). In the unlikely event the exemption falls to $1 million, then yes, it will hit a lot more people.  However, I urge people to pay more attention to issues related to gift taxes than to estate taxes, paid by less than 2 percent of estates.

Previously I have blogged about the upcoming changes to Wisconsin's 529 Plan, called EdVest .  The plan allows parents (and others) to save money for college in a tax efficient manner.  Deposits result in an income tax deduction, growth is not taxed, and withdraws are not taxed if used for higher education.  All of these make 529s quite attractive for parents thinking ahead to college. When Wills Fargo was the plan administrator when we opened our accounts, and for both we opted for an index fund because the expense ratio was low.  This means more money goes into our investment and less to the company's pockets.  As Wells Fargo is moved out and TIA-CREFF is moved in as the plan administrator we are disappointed to read in the materials that only ranges of expense ratios and not ratios for each fund  now available.  Without this data it is challenging for us to compare the funds under Wells Fargo to the new options. In the end what matters most is ...

When I saw the envelope in my in-box I knew -- damn, the register of deeds rejected our filing .  A thick envelope is never a good thing; it means everything you sent them is coming back, a thin envelope means it was accepted an a confirmation slip awaits.  Just the opposite of college acceptance letters, or at least back in the day when college admission was conveyed via the US Mail and not the internet. Because the man who had died was listed as one of three people on the deed, with no statement of what interest he owned (join tenant, life estate, etc.) the presumption is tenants-in-common .  As such, his share needs to be transferred via probate, and not the much more simple HT-110 form.  To complicate matters, the decedent was a resident of Illinois, not Wisconsin where the property at issue is located.  And when that happens, an ancillary probate is needed. Ancillary is an adjective which means to provide necessary support to a primary activity or ope...

Image credit:  www.sxc.hu - free image Routinely, people ask me what they can do to minimize the burden of probate on loved ones once they are gone.  Common convention always seems to move towards trusts, which I feel are more complexity than most people want or need.  My answer is simple, be organized!  The more organized you are, the easier it will be on your loved ones once your earthly days have come to an end. And keeping with that mantra, I recently asked a law clerk of mine to research the exact steps involved for a client to remove his old will from the file at Dane County's Probate Court, where it had been placed for safekeeping.  After working with me this past summer, he had a new will that revoked his former one on file. However, upon his death there is a chance that the newer will would not be located in his personal possessions and the old will on file would be found.  Later is the newer one was recovered....well you get the picture, a ...

Image credit:  www.sxc.hu - free image Recent news reports show that the amount any one person can gift to another in a calendar year will increase from $13,000 in 2012 to $14,000 in 2013 .  The increase is a result of cumulative indexing.  Married couples can each give a gift, meaning a total of $28,000 could be gifted to a child in the calendar year.  One reminder, the gift is considered to have been made when the check is cashed.  So, if a check is written on December 23rd, but not cashed until January 2nd, the IRS will consider the gift to have been made in the year corresponding with January, not December.  This could become an issue if the practice were repeated, but the check cashed on December 30th.  Both would be viewed as occurring in one calendar year, and then gift tax issues arise. Please remember, a blog post is no substitute for an attorney of CPA.  Please consult with a professional in your area for the latest information ...

Image Credit:  www.sxc.hu - free image Every now and then I will get a call from clients inquiring about whether or not a trust fund is the right for them to use when creating a way to save for a grandchild's college education.  Historically this may have been an ideal vehicle, but it is more obsolete because of the creation of 529 plans. Authorized under Section 529 of the Internal Revenue Service Code, these plans allow tax-advantaged ways to save for college.  Sponsored by states, state agencies, or educational organizations, they are common throughout the country.  My husband and I opted to create one for each of our children; with an initial funding immediately after receiving the Social Security Number!  Deposits give us an income tax break, there is no tax on growth, and when used for higher education, not tax is applied when funds are removed. And 529s are not reserved solely for parents.  Grandparents can also create accounts.  The ad...

Thanks to all those who were able to donate to my 2012 request for American Heart Association donations.  Together we raised over $1100....blowing away all previous years (and this is close to my 15th year).  It was also the wettest heart walk we've done, but so worth it.  Here are a few images from the day. What a wonderful day.  And I'm already putting together ideas on how to make the 2013 walk even better!

Image credit:  www.sxc.hu - free image As the work week comes to a close I am delighted to share the news that I have raised over $800 for the American Heart Walk, which will happen tomorrow morning at the lovely Warner Park.  Bundled up for a fall morning in Wisconsin, I will complete the walk with my husband and small children.  The generosity of family, friends, clients, and colleagues has warmed my heart.  Times may be hard for many people, but they opened up their checkbooks to support a great cause.  24 hours remains for on-line pledges, and every penny counts.  Here is a link to my web page .  Thanks for reading and supporting me again this year!

This year November 15th marks National Philanthropy Day .  Celebrated across the nation through luncheons, galas, award ceremonies, and seminars, it is a day to recognize those who have given from the heart.  And I am thrilled to be attending my very first National Philanthropy Day event right here in Madison, Wisconsin .  Scheduled for Friday, November 2nd at the Overture Arts Center will be a networking reception, luncheon and awards ceremony. In a counter balance to the drafting I do for clients in the areas of estate planning and probate, I am also completing a book on how the middle class can also be philanthropic.  Giving need not be reserved for the tech billionaires we read out in the news.  As I put the finishing touches on my book, I'd love to hear stories from real world America.  What small gift made a difference in the life of a non-profit?  Please share, and inspire others.  And I might profile the story in my book!

Image credit:  www.sxc.hu - free image On any given evening or weekend afternoon when I am asked to speak on the basics of estate planning and probate there is one question I always pose to the audience.   Does anyone here not have a will, if so raise your hand .  Inevitably, about one third to half the people in the room raise their hands.  However, those who do have a document need to ask the question, is my will up-to-date?  If not, they are likely in the same boat as those without a document.   Once the hands are in the air my response is, actually you do have a will.   Since you haven't taken the time to write on, the State Legislature had and it is located in the statutes .  Those without wills and those with out-of-date wills are leaving decisions about who does what and what happens to stuff up to the courts to decided.  Most likely everyone is better equipped than a probate commission and a set of statutes to make those deci...

Over the weekend I read a brief news story about a new program in Madison - walk with a doctor .  The concept is quite simple.  Take a nature walk, in a local park, with a doctor.  The idea promotes an active lifestyle, and gives physicians a chance to educate in a more relaxed environment.  Each walk has a topic as well, such as weight loss surgery. As the parent of young children, I'd love to see some walks geared towards your nation's youth.  Let's think preventive medicine by getting kids interested in walks through the woods.  I try to do this on my own, but taking a 4 and 2 year old for a nature walk is.....well a bit stressful at times.  How can our medical profession makes this easier for me?  Might a future walk address this question?  Having something other than pricey procedures and the latest prescription would be refreshing. I don't mean to be critical, but I am an attorney after all and that is my training.  I am thankf...

A large portion of my non-work reading material has been focused on books associated with the power of meditation and other techniques associated with re-wiring the brain.  Essentially how to move from a world of rapid fire thoughts and anxious feelings to one of a more tranquil calm, living in the moment, focused on one thing.  It's a continuum that features extremes, but most people, myself included, hover near the center but desire to be a bit more to the calm side. And I am not alone.  The book group I coordinate routinely mentions books on this topic (we call it book club with a twist, instead of everyone reading one book we simply gather at a coffee house or restaurant and report on what we've read in the past month.  No pressure, no guilt, pure enjoyment!). Following our last meeting, someone shared a link about a free on-line series called The Compassionate Brain.  An eight-week series will explore the approach of eight different experts on the brai...

Image Credit:  www.sxc.hu - free image This week I read the book 300 Questions to Ask Your Parents....Before It's Too Late by Shannon Adler .  While the introduction to the book was rather gripping, once I got into the questions I was puzzled. First, too many questions seemed to be posed by a stranger.  For example, did you go to college and if so, where ?  I realize that our society has become more introverted these days; ipods, video games, phones with movies -- we escape to our own world and retreat from one another.  But really, an adult child not knowing if a parent went to college strikes me as too distant. Second, far too many questions are designed to be asked of a well educated stable parent.  I know, first hand, that parents are often not educated beyond high school (mine for example) and shoulder a lot of emotional baggage.  For families where the parents have Masters degrees and are emotionally sound, this book might be useful. ...

On Friday, October 26th a reception will be held at Holy Wisdom Monastery (located in Middleton, Wisconsin) showcasing 42 wildlife proofs and prints, created by Owen Gromme .  Through a donation from a private collection, the pieces are for sale with proceeds benefiting HWM.  The reception will be held from 5pm - 7pm on the 26th of October.  General viewing of the art is available from 8am - 4:30pm, Monday through Friday. As a Wisconsin estate planning attorney it warms my heart to learn about amazing wildlife images of the Midwest that are for sale, benefiting a non-profit.  Times may be challenging for many, individuals and non-profits alike, but through creative collaboration good things grow. Are there collections in your home that might be enjoyed by the general public and possibly be sold to raise funds for a cause dear to your heart?  Philanthropic living is within the grasp of all, even those who live in the middle class. Learn more at Holy Wisdom ...

Most people have probably seen those new high tech boxes with squiggles, called QR codes.  They have them everywhere -- stores, coffee shops, the library.  And now at the cemetery.  No, I am not joking.  NPR ran a story on it last week (thanks to my husband for sending me this link).  The idea is to link a headstone with a personalized web page for the deceased .  The web page can contain photos, music, stories, etc.  According to the people behind this business, it will make visiting a cemetery more interactive for future generations -- sit down and watch family movies and put some flowers on the grave. Creeped out or ready to sign up?  I think I fall into the creeped out category on this one.  It seems as though technology is seeping into every aspect of our lives, and quite contemplation at someone's final resting place seems like something to hold on to.  But that is just me -- what about  you?

Recently the television game show Family Feud came to mind.  Reading this article on elder abuse called up the phrase "survey says", and sadly the number one thief is a family member, underscoring the phrase "family feud".  Yes, sadly it appears that family members are they most likely people to commit financial abuse of our nation's seniors .  Proximity is probably at the core; people name their kids, even if the kids aren't the the best choice. During my seminars on estate planning and probate I always caution people not to list agents on power of attorney for finance or health care with a knee jerk response.  "I'll name my son because he was the first born" is not the answer I want to hear.  I urge my clients to consider who is right for the job, who has the right skill set and personality.  If you have a child that is struggling financially, makes bad decisions, is impulsive, does not get along with others, etc., he or she is not the...

Image Credit:  www.sxc.hu - free image People often ask me what they can do to keep the expenditure of time and money low when the die; no one wants to leave a mess for loved ones.  Being organized is the key ingredient I recommend.  Whether you have a few hundred dollars or millions, organization will make the distribution process so much easier. This point is illustrated in a recent news story out of Carson City.  A recluse died with only $200 in his checking account, but between $7 and $10 million in coin s .  His nearest living relative is a first cousin, who stands to inherit under state law (he appears to have not had a will, so statutory distribution is the default).  But where is she? If you died next week, how easy would it be for your personal representative to find your heirs?  Are the addresses and phone numbers stored on your Smart Phone?  If so, would the PR be able to bring them up?  High tech is great, but when s...

Last week I came across this quote, which tied back to Goodreads.  I have no idea about its origin, but love the concept.  What a great way to start another week, and a new month. "Things you do for yourself are gone when you are gone, but things you do for others remain your legacy". - Kalu Kalu Does this inspire you?  If so, how?  Have you mentioned a favorite cause in your will or other estate planning documents?  Share a comment and inspire others!