Navigator

As an attorney I spend a lot of my time educating clients and seminar attendees on the basics of wills, trusts and estates.  Translating law into plain English is a job requirement, and one I really enjoy.  As the work week comes to an end I offer the following post on the difference between Medicare and Medicaid.  While the words are similar, they are two very distinct programs.  And since Friday is my day out of the office, allowing me to focus on parenting my 4 and 2 year old children, this post was composed one an assistant of mine, Katherine Young, who is in her third and final year of law school at my alma mater, the University of Wisconsin. I'l be back next week with more thoughts on illness, death and taxes for the middle class.  Thanks for reading, and remember a blog is not an attorney -- always seek counsel from an attorney licensed in your state. Guest Post by, Katherine Young, 3L Unv. of Wisconsin During this past election year, the govern...

It is not uncommon to find out an attorney is also a self-declared book worm.  A love of reading is almost a requirement to get one through three years of law school.  And most of us emerge from those three years with an even stronger desire to read, but to read things that are not about the law.  That was my case, but I have since resigned to the fact that my area of focus, illness, death and taxes creeps into the arts more often than not. Case in point, while visiting the library recently I spied a slim novella on a shelf written by Richard Russo.  His earlier work, Empire Falls is a favorite of mine, so without thinking I dropped it in our check out bag and headed home.   Intervention is a total of 67 pages, , I thought to myself, wonderful -- a story I can get through in no time!  That turned out to be true (I finished it in two days), but by page 12 or so it was clear that the undercurrent to this story was a cancer diagnosis.  Entertainmen...

Image credit:  www.sxc.hu - free image Kudos to you if you have 1) completed a will, and 2) named a charity as either a primary or contingent beneficiary.  Welcome to a minority of Americans who have taken charge of what will happen to assets upon death and who will oversee the process.  However, there is one lingering question I would ask about those named charities -- does the language take into account the fact that non-profits routinely modify and change their name?  If not, it's time for a will update in my humble opinion. Earlier this week my local newspaper ran a story about how the non-profit Gilda's Club was changing its name to Cancer Support Community .  The reason, younger folks fighting cancer, the groups target audience, were born after Gilda Radner's death and do not know who she is.  Thus they do not make the connection to younger people fighting cancer.  I tested this on my law student working with me today, who was born in 198...

When it comes time to hire a lawyer to draft a will, opening up the phone book or running a Google search is usually not the best approach for those in need of an attorney's counsel.  Why?  When developing an estate plan to fit your needs you need to be able to share openly the ins and outs of your financial situation, family dynamic and other sensitive concerns.  Here are a few things you may want to consider when seeking out an attorney for your will, etc: Interview 3 or 4 different attorneys.  Remember you are hiring this person, so hire someone who is not only competent, but whom you like; Ask friends, family, and neighbors for referrals.  Chances are if they did not like an attorney who helped them they will tell you why, and if they liked the attorney they will give a great endorsement; Look for an educator.  Estate planning is full of technical terms and concepts.  Seek out an attorney who is willing to explain what they are creating for...

I'll be the firs to admit it, if a movie stars George Clooney I don't need anything else to put it on my must-see list.  Prior to having children, I would have seen the film in a theater.  Since having kids, my cinema days are on hold and it is only every few months that I have the time to settle down and watch a film on DVD with my computer.  And so that was the scenario a few weeks ago.  Snuggled under a blanket, kids tucked into bed, and nothing pressing for the following day, I popped in a George Clooney film. There was a vague knowledge that The Descendants had something to do with Hawaii, death, and a trust.  Little did I know I was about to spend near two hours immersed in issues I routinely handle at work.  Granted, I do not have clients with 25,000 acres of pristine Hawaiian land in a trust.  But advance directives, the concept of livings wills, accidents out of the blue, family members waiting on an inheritance, and the messiness of rel...

It's here, Black Friday.  Actually, did it start yesterday with the stores that were open on Thanksgiving?  Any way, I am here today to remind you that after Black Friday and Cyber Monday there is a movement.... #GivingTuesday .  This year, on November 27th, people are urged to think about how they can give back at this holiday time. For our family this is a natural fit.  Long ago we abandoned the long holiday lists.  Our small children receive a few simple gifts, and then we write checks to causes that meant a great deal to us in the year ahead.  This year we may add another, such as going to a blood drive or purchasing a meal for a family in need.  What might you be able to do?  Do you want to give back?  Let me know what you think?  I love the topic of middle class philanthropy and want to know what you are thinking.  Please share and let the discussion begin. Thanks for reading, and I'll be back next week with more thoughts ...

Today our nation pauses to enjoy good food, spend time with loved ones, and celebrate Thanksgiving.  I am taking the day off to be with family and prepare a feast.  But here is a little saying, one our family says before each meal (when we remember, life with a 4 and 2 year old is a little hectic some days).  Enjoy your day everyone! For trees so tall, and skies so blue, For family, friends, and food, we thank you. Image credit:  www.sxc.hu - free image

This past weekend a blurb in the Sunday Wisconsin State Journal caught my eye -- from honoring his grandfather with a homemade casket, man forms a business .   Oh I told my husband, make sure we hold on to this until I have a chance to read that article!  To which I received a slightly concerned and bewildered look -- my job is rather macabre. And so I have had a chance to read the article.  It is a lovely profile of a man who has create an eco-friendly business right here in my home state of Wisconsin.   Northwoods Casket Co . creates eco-friendly caskets for affordable prices.  And apparently it is what the public wants, orders are up. One fact that jumped out at me was in the introduction.  After his grandfather's death his family stood around, in grief, unable to decide what to do -- burial, cremation, ?  In the end the grandmother said yes to the grandson's offer to build a casket, similar to one from the movie Unforegiven (his Grandfather's f...

Image credit:  www.sxc.hu - free image The holidays are upon us, and with them come gatherings of relatives and family.  Often a time of joy, it is always an opportunity to make sure your loved ones have essential information.  As I type I can hear my husband now -- seriously Melinda, what a downer topic for a holiday meal.  Okay, yes, maybe not at the table, but during the course of a visit ask yourself, do these folks know what they need to know?  Here would be my top five: Location of my powers of attorney and will (assuming my husband cannot act); Name and number of someone willing to care for our cat's in the event of an accident or death; Location of a list of our assets (retirement accounts, life insurance, business bank accounts); Where to find information on what bills are on auto-pay with our credit card and or checking account; and How to find contact information for the people we've named as guardian of the children and their trust. T...

Image credit:  www.sxc.hu - free image Show of hands, who does not have a will?   This is a routine question I ask during the many seminars I offer on the basics of wills, trusts and probate.  Sheepishly hands are raised.  To which I offer --  Guess what, you actual DO have a will.  If you have not taken control of the situation and written one yourself, the State of Wisconsin has done one for you.  And it is located in State Statues. Called intestacy, when a person dies without a will the distribution of his or her probate property (meaning assets that do not have a beneficiary form or other label), is governed by state law.  In many situations this distribution may be the sames as the person would have said if they had done a will.  And in many situations it is not the same.  For example, property may pass to your nearest living relative instead of the person you are spending your life with but are not legally married for some r...

The good news is that those pesky political commercials are behind us now.  However, the focus has now been redirected to the "fiscal cliff".  Buried in there is a discussion on what to do with the federal estate tax.  If no action is taken, the federal exemption limit will fall to $1 million in 2013.  And it will resurrect the Wisconsin estate tax.  So, while we may want to look away from the ways of Washington, D.C., I cannot. Image credit:  www.sxc.hu - free image I will be following the discussion (is that a generous choice of words) and wait, listen, and read.  What oh what will happen?  Time will tell, and sadly I think Congress and President will simply "kick the ball".  Meaning they'll come up with a short-term fix, good for a year or two.  Which means long-term planning is not really an option for folks flirting with the $1 million level. Enjoy your weekend everyone, and I'll be back Monday with more on illness, dea...

Image credit: www.sxc.hu - free image All professions have a lingo all their own, and that is especially true in the practice of law.  Latin, German and French all contribute to an amazing list of terms that roll of the tongues of estate planning attorneys, but cause blank stares and confusion among everyday folks.  That is why my firm web site has a glossary of estate planning and probate terms ; one role of lawyer is to educate.  The three that jump out at me are: Codicil -- a fancy word for amendment to a will.  Someone creates one of these when s/he already has a will, but wants to make a minor change.  For example, change the guardian named for children or the name of a charity.  Just like a will, a codicil must be executed to meet State law requirements; Issue -- as the mother of two young children, I feel this word has a double meaning.  Technically it refers to your offspring a.k.a. children, grandchildren, great-grandchildren, etc. ...

Image Credit:  www.sxc.hu - free image Starting at a blank power of attorney for health care form and confused about who to name as your agent?  If this is you, pat yourself on the back for taking control of your life and addressing this issue.  As for who to name, consider the following, which I come to from personal experience.  I was my father's power of attorney for health care in 2009 while he was dying. First -- who do you know and trust that is good speaking with doctors and nurses; Second -- who in your circle of family and friends is comfortable with medical terminology; Third -- who in your life has the emotional strength to keep it together if this document comes into play -- we are not facing a sprained ankle here, but a very severe condition; and Fourth -- who has the time to be there?  My father spent the final month of his life in a hospital, that last week in palliative care.  At the time I had a 13 month old child and my own le...

Somehow or other 2012 has nearly passed us by.  And once again I am looking forward to starting the new year with a variety of seminars on issues related to illness, death and taxes for the middle class.  From talks at a local church, to a small segment of a retirement workshop, to Money Week, you'll find me all around the Madison area educating folks on the basics of estate planning.  Check out my web site for specifics on dates and locations .  And if your organization is interested in setting up its own presentation, just let me know.

Image credit:  www.sxc.hu - free image If you are over a certain age you probably receive routine cards in the mail inviting you to the local hotel for a free chicken dinner and a seminar on how to avoid probate via a living trust.  These instruments are pushed, often by sales people who are not attorneys, mainly because they are lucrative.  Proceed with caution. When I work with clients I use trusts only when the fit the situation and I feel the client has the sophistication to manage the inevitable tax issues that will develop.  Most people do not want the hassles associated with trusts, but want to avoid probate.  If so, our conversation centers around the use of: Transfer on Death Deed for real estate.  Not all states have this option, but we do in Wisconsin.  It is a label placed on a deed that states who should inherit the property upon the owners death.  Probate is avoided, and a small filing fee is paid to the register of deeds. ...

There is nothing certain about life except death and taxes.  And often the two go together.  Loosing a loved one is never easy, no matter how much time a family may have had to prepare.  Emotions run high, caregivers suffer exhaustion, paperwork swirls, life marches on, and some matters need to be addressed even though they are unpleasant.  I see this every day in my legal practice.  To the extent you can, do not overlook income tax matters for the loved one you have lost. If a loved one has died and you are picking up the pieces and moving the paper work forward, there is one important thing many overlook -- income tax forms.  When empowered by a probate court in Wisconsin, the  Personal Representative has a duty to make sure a last income tax form is filed for the decedent.  And, of the decedent's estate earned more than $600 (current level, which may change in the future), then a fiduciary income tax return is likely due as well.  And th...

Two weekends ago our church (Prairire UU in Madison, Wisconsin) took a service to recognize the Day of the Dead.  A traditional Latin American holiday, it is a moving tribute to loved ones who have left their earthly life.  Afterward, a staff member sent a link to a moving statement created by NPR's Aaron Freeman. I found a link on YouTube (the photos are bit off).  It is titled - Why You Want a Physicist to Speak at Your Funeral.  The words are moving, and I find it comforting to be reminded that one's energy never really leaves this Earth. The work I do is rewarding, but also emotionally draining at times.  I am thankful for the insight of Aaron Freeman and others like him.  A positive outlook can be such a spirit lifter, especially on those days you learned of a client's passing. Take care, be healthy, and enjoy every minute you can!

Ever wonder if you should bother using certified mail instead of regular mail?  As an attorney I prefer to err on the side of caution, and would likely opt for certified.  While attending a recent tax law seminar update one update related to mailings to the Wisconsin Department of Revenue. ....in general, a petition is considered timely filed only if it is actually received by the Commission (Tax Appeals Commission) on or before the due date, with one exception.  The exception....Wis. Stat. section 73.01(5)(a), a petition is considered timely filed when it is mailed by certified mail  in a properly addressed envelope, with postage duly prepaid, with the envelope postmarked before midnight of the last day for filing.  The use of regular mail is untimely.  Priority mail is untimely.  Sliding it under the door of the office after it is closed is untimely.  Details matter in the area of law. While this is a narrow section of Wisconsin law, the pri...

Every four years our country allows its adult citizens to come forward and have a say who which person shall lead our nation.  Whether you love or despise government, I encourage you to exercise your right to vote. Image credit:  www.sxc.hu - free image Four years ago my husband and I walked to our polling place, pushing our infant son in his stroller.  Today he is four years old and has a two year old sister.  As a child I remember accompanying my mother to the voting booth.  It is simply something we do, just like brushing our teeth.  And I look forward to many more elections, especially the ones where my children will be old enough to case a vote themselves. Enjoy democracy today, it is a precious gift.

If you are "do-it-yourself" type person, there is a chance you'll be processing a 2012 gift tax return for yourself or a loved one who died in 2012.  If so, I recently came across a nice nugget of information...the mailing address for the form.  Unlike other IRS forms, there is one mailing address for all gift tax forms.  Whether you live in Maine or California, the address you should use is: Department of Treasury Internal Revenue Service Center Cincinnati, OH  45999 Forms are due by April 15, 2013.  Disclaimer -- life is change, so please note this blog post was written in November 2012.  Please double check with the IRS to make sure the agency has not made any changes after this posted.  And as I always say, a blog is not a lawyer.  Please call one for advice specific to your situation. Image credit: www.sxc.hu - free image

Legal lingo is full of acronyms, including ILIT which stands for irrevocable life insurance trust. It is a fairly advanced estate planning tool used by higher net worth families to minimize the possible impact of federal estate taxes upon death; especially attractive to business owners who have a lot of wealth on paper, but not so much in the liquid sense.  ILITs allow someone to set up a trust, and gift money to that trust.  The trust purchases a life insurance policy on the person.  Upon his or her death, the insurance pays into the trust and now there is liquid cash available to pay an estate tax, but it is outside of his or her estate.  It is a way to prevent dipping into a business or farm's equity.  And it may become a thing of the past. The President's FY2013 Green Book , or fiscal proposals, calls for ending ILITs.  No longer would the assets be excluded from the decedent's estate nor would distributions during the grantor's life not be subject ...

The 1st of November is the Day of the Dead , a traditional Mexican holiday that has spread across the globe.    Grief from the loss of a loved one can be crippling, however, November 1st gives one a great reason focus on the greatness that once was and less on what was lost. Image credit:  www.sxc.hu - free image Personally I find this to be a great way to share the life of my father, who died in 2009 when my son was a year old and before my daughter was born.  My children will only know their maternal grandfather through me, and today is a day I can: cook one of his favorite meals; watch a favorite TV show or movie; look at photo albums from my youth; tell one of his favorite jokes; or scatter some bird seed on his grave (he so loved feeding the birds). How about you?  What things do you do to celebrate a loved one who has parted?  Thanks for reading, and I'll be back tomorrow with more thoughts on the topic of illness, death and taxes for...