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Dear Reader, Today I pause and wish you a happy Winter Solstice.  December 21st marks the longest night, and shortest day of the year.  Starting tomorrow we will begin the journey towards summer, with ever increasing daylight and shortened evenings. Today also marks the day my husband proposed, asking me to marry him on the Summer Solstice.  It is a warm and tender day in my heart, and marks the beginning of a break from my legal work.  I will be back on January 2nd with more thoughts on illness, death and taxes for the middle class. And now I am off to enjoy winter bonfires, slow cooked family dinners, warm beverages, nature walks with my kids, and gatherings with friends and family. I appreciate your interest in my posts, and wish you a relaxing and joyous end to 2012. Best wishes, Melinda Image credit: www.sxc.hu - free image

Image credit:  www.sxc.hu - free image Regular readers of my blog will know that charitable giving is a strong interest of mine.  In the coming year watch for my book on how the middle class can be philanthropic, leaving a legacy without having millions.  In the meantime, I offer these tips, borrowed from the Federal Trade Commission, as you consider making charitable contributions.  Crooks do not take the holidays off, so make sure you are making informed donations. Ask who wants your money and how it will be used; Be careful of similarly sounding names of organizations; Do not send cash donations; and Use caution if promised gifts are being offered. See the FTC's complete charity checklist here .

As the winter holidays approach we are bombarded with songs and cheer.  And if you are an estate planning attorney some of those lyrics may jump out at you.  Take Santa Claus Is Coming To Town: You better watch out You better not cry Better not pout I'm telling you why Santa Claus is coming to town He's making a list And checking it twice;  Checking it twice....that is what catches my ear!  I cannot believe how many times I see a look of surprise come over someone's face when the learn the true name of who is listed on a beneficiary form.  A relative has died.  The family knows a life insurance or retirement account exists.  They assume the listed beneficiary is so-and-so.  But it turns out to be.....an ex-spouse.  This happened last week.  Thankfully the ex-spouse is the parent of those who thought they were inheriting.  And they were able to say "yes" when I asked "are you on good terms with your other parent?" If...

Image credit: www.sxc.hu - free image During the frequent seminars I give on this ins and outs of estate planning and probate, one common myth bust is that of a power of attorney having the ability to "take care of things" after someone dies. Again and again clients and seminar attendees will say something to the effect of "so, I named my daughter as my power of attorney for finance.  So when I die, she'll handle things.  Right?"  To which I say, "no that is not right.  Remember, a power of attorney gives someone the power to makes decisions while you are alive but too sick to act.  Once you die, that power ends.  Upon death, the person nominated in a will or trust then has the power to administer an estate.  Those can be the same people, but it is up to you to nominate them in your papers." As an attorney I find that a very high percentage of my work relates to education.  Many times I am translating legal terms into everyday English, a...

Image credit:  www.sxc.hu - free image Until today I have always had positive things to say about my interaction with the Internal Revenue Service from my role as an estate planning attorney.  Unfortunately, its reputation with me was tarnished a bit today when I attempted to kick start a probate and trust administration for a recently deceased client. The client had nearly all of his assets in a trust, of which a child will serve as trustee.  Now that the grantor has passed, the trust needs an EIN number .  However, the decedent also had numerous savings bonds outside of the trust, which requires us to open a probate and an estate of checking account.  And for that checking account, we need an EIN . So on-line I went.  I had tried to do this Sunday when I was working at home, but the IRS apparently gives its computers that day off.  No EIN applications allowed on Sunday!  So first thing Monday morning I go on to the web site.  All ...

December 14th has been a happy day in my life since 1984, the day my oldest nephew was born.  Sadly that joy is clouded today by the horrific news from Connecticut.  My mind had been mulling what to post, prior to hearing this news.  Once heard I forgot about my legal work and focused on my day with my children.  Ages 4 and 2, they are the focal point of my world.  Off we went to the zoo for fresh air, animal friends, and living in the moment.  Once home I saw a post on Facebook that I wanted to share with my readers.  It offers tips on how to speak with children about violence .  Sadly this is required reading for parents these days. And the discourse about gun control will likely dominate and polarize our society once again.  My wish is that along with it, we hear for a call for increased access to mental health services in our nation.  Behind this unimaginable act was a very sick person, I write that not knowing anything about the s...

Probate, it is something so many people strive to avoid.  Whether it is dumping everything into a trust or placing beneficiary forms on all of their assets, some people become very diligent about making sure nothing passes through the probate court. The downside....one still dies with debts.  And how will those be paid if there is no probate.  A properly drafted and funded trust would take care of this issue, but a do-it-yourself patch work quilt approach may leave gaps.  As it did for the family in my office today. The recently deceased parent title property jointly with children.  The various life insurance policies had beneficiary forms.  But probate will likely occur to create a neat and clean manner to sell vehicles, pay funeral bills, medical bills, cell phone, bills. In the end, organization saves more time and money than whether something is probate or not.  We just scratched the surface on the number of phone calls we have to make to tra...

The order of phone calls sadly seems to go from oncologist to patient, and then patient to me.  Why?  A terminal cancer diagnosis has been given, and the patient realizes that the will they have been thinking about on and off for years really needs to happen.  And happen soon. As a result I spend a good deal of time working with cancer patients.  And when our meetings are over and the work complete, their stories bounce around in my mind.  Because of my work and their disease I may think about cancer more than your average 39 year old mother of two small children.  Thankfully my thoughts generally fall into the category of "what can I do to prevent this from happening to me anytime soon?" Lovers of the book The Tao of Pooh by Benjamin Hoff , as I am, know that really there may be very little one can do.  Sometimes life simply happens.  But there are certainly some small steps one can take to decreases the chances of an oncologist visit.  ...

Image credit:  www.sxc.hu - free image Creating an estate plan is a step that less than half of adult Americans have taken.  It is estimated that around 55% of Americans do not have a will.  However, even if you are in the minority of people who have created an estate plan, there are always more things you can do to make your departure less difficult for loved ones left behind.   For example: organize your papers in one central folder or binder that is clearly marked Estate Planning Documents; inform your personal representative / executor / trustee about the location of said binder; include copies of all beneficiary forms for your life insurance, retirement accounts, brokerage accounts, and other financial service instruments; provide contact information for those you would like notified of your passing.  I for example include an up-to-date holiday card address list so people could receive a letter or copy of an obituary; list on-line assets, such...

Image credit:  www.sxc.hu - free image Due to my line of work -- illness,death and taxes for the middle class -- I often am posed the question is a reverse mortgage a good thing for me?  And of course being an attorney, my answer is it depends. Nothing of quality in the world of estate planning and probate is a one-size fits all program.   It might be a good idea, and it might not.  More information is needed before reaching a conclusion. If you are wondering if a reverse mortgage is right for you, or for your aging parents, the first step is to gather information and learn exactly what a reverse mortgage is.  Second, you need to apply that information to your specific situation and goals. A great place to get started is the Consumer Financial Protection Bureau's web site .  I learned about it in the financial column in Sunday's paper.  It is full of great basic definitions on all things financial, including reverse mortgages.  It then...

The news this week has been energized by baby talk, Royal baby talk.  There is the speculation of whether her intense morning sickness is a sign of twins, to whether king or queen to be will arrive in 2013, to maternity fashion.  But me being me wondered, hmmmm, who would they name as a guardian to the child -- Harry, Pippa, someone else? Yes, as an estate planning and probate attorney as well as the mother of young children (currently 4.5 and 2.5 years old), I know the importance of answering that tough parenting question -- who will raise the child(ren) if both parents die?  Whenever I voice these types of questions to my husband he gives me a puzzled look and says, have you considered a new area of law, something happier?  To which I respond, there is none -- lawyers come into the picture when life happens, the unpleasant aspects of life happening. And so I find myself writing to you dear reader.  If you have children 18 and younger, have you nominated a ...

Image credit:  www.sxc.hu - free image When working with clients we have a series of three meetings, all covered by a flat-fee.  That means they can pay attention to what I am saying and not worry about my billable hour and the hands on the clock.  It also means they can asks questions, lots of questions, and one that always comes up at the last meeting (the day they sign) is -- where should I keep my will? My response is to direct them to my letter in their folder, suggesting a fire-proof safe kept in the home.  You know, those small ones you can get at an office supply store for about $45.  Some clients are a bit surprised, why not my safe deposit box at the bank? The answer is simple.  The document that gives someone the power to get into the box is in the box.  And there you have it - a huge mess.  In my opinion, keep your document safe but accessible.  And that is where the home box comes in to play. If that is not a comfortab...

M. Gustafson Gervasi, 2012, one of our 4-legged family members, Willa. Without a doubt, four-legged family members are dear to peoples' hearts.  Whether you have a Fiddo the Dog, Fluffy the Cat, or Birdie the Bird, keep the following in mind when preparing a will. Pets that have a high value, let's say over $1,000, should be mentioned in a will because they are technically property.  If you have pure-breed animals worth their weight in gold, they are an asset and should be addressed as so; Pet trusts, created in a will, are useful for animals with a long life span (i.e. turtles, parrots) or large medical bills.  A trust allows you to place the animal(s) and a sum of money in a trust to care for the animal(s), and then distribute any remaining assets upon the animal(s) passing; Use a letter of instruction to provide the name of the veterinarian you use as well as information on special food or medicine for your pet.  This does not belong in your will, but n...

Last week President Obama offered his first go at the federal estate tax, which is tangled up in the whole fiscal cliff scenario playing out in Washington, D.C.  According to news reports , his proposal is to have the federal exemption return to 2009 levels; $3.5 million, with a 45 percent tax.  What does that mean?  Anyone dying with an estate over $3.5 million would have a federal estate tax due, in the amount of 45 percent on the amount above $3.5 million. If no agreement is met, the federal exemption will fall to $1 million, and I'd have to look up the tax rate.  With no doubt, it would capture a lot more estates than the $3.5 million or the current $5 million. As December ticks away my eyes will be on D.C., waiting and wondering what resolution, if any, will emerge.  And then I can offer a bit more concrete guidance for my clients. Thanks for reading, and remember,  a blog is not a lawyer nor does it constitute legal advice.  Please consult ...

Reports are in, and it appears that the inaugural #GivingTuesday was a success.  On-line giving to charities on the Tuesday after Thanksgiving was up 53% according to sources .  I love this idea.  It completes a trifecta of holiday spending: Black Friday, Cyber Monday and now #GivingTuesday.  Personally, I am happy to skip the first two options and reserve my spending for charities.  No trips to the mall, nothing to wrap, supporting causes that are in need.  What better way to celebrate the winter holiday season? The former policy analyst in me wonders -- did people concentrate their giving on that one day?  If so, are donations to charities this holiday season up overall, or did they all fall on that one day?  Time will tell.  And the estate planning attorney in me sees this and thinks -- good, those donations were made early enough in the calendar year to appropriately qualify for a 2012 tax deduction (IRS sees them as a donation in the ...