Sample Letter to your Personal Representative

Sample Letter to your Personal Representative

By Melinda Gustafson Gervasi

December 1, 2021

Ireland Window.  Image by M. Gustafson Gervasi, 2021

Samples are back !?! was the first thought that passed through my mind this past weekend when my spouse and I stopped at the westside Woodman's Liquor Store to select a few bottles for the upcoming holiday season.  Yes, samples at the liquor store, Johnnie Walker Double Black to be exact -- that is how we role here in Wisconsin. It felt a bit like the before-pandemic times and reminded me that samples of my work can be fun for my readers as well.  So today I share with you a sample of a document I provide to all of my current clients.  It provides suggestions for composing a letter of instruction to the personal representative (called an executor in other states). 

Sample Letter to the Personal Representative

Providing instructions to your Personal Representative (a.k.a Executor in other states) will increase the accuracy and efficiency of processing your final affairs. The following are topics you may wish to provide instruction, wishes, or other details to aid your PR.

Personal Data: the following information may be helpful to your PR as they handle your final affairs:

• dates of: birth, marriage(s), divorce(s), death of spouse/partner

• Social Security Number

• Religious affiliation, name and contact of spiritual advisor

• Educational achievements, degrees held, honors earned

• family tree with names, locations, dates of birth and death

People: provide current contact information (address, cell phone, email) for the people in your life that should be notified in general as well as though who may be able to assist your PR. Specifically:

• relatives and close family friends

• person(s) with a spare key to your home, office, vehicle

• childcare providers, school office, children’s extracurricular programs

• pet sitter, veterinarian, animal boarding facility

• housekeeping, lawn company, snow removal team

• employer, co-workers, business associates

• accountant, financial planner, insurance agent, banker

Pets: list information that will assist in the daily care and re-homing of your pet(s). For example:

• type of food and source (online delivery, prescription, etc), frequency of feeding, etc

• medical treatments

• groomer

• allergies or summary of health issues

• who can take emergency care of the animal(s)

• suggestions for long-term or permanent placement of the animal(s)

Professional duties: what information will help your PR address professional duties that need to be resolved.

• contact information for all organizations that have issued you a professional license or other authority (lawyers, doctors, pharmacist, educator, dentist, accountant, etc.)

• list of professional insurances you carry (malpractice for example)

• information on location of banking or financial assets associated with your professional role

• list of membership or accounts associated with your professional duties (Linked In, Google +, Twitter, Facebook, etc.)

Assets: The job of your PR will be to gather all of your assets and determine if the asset is “probate”, meaning it has no co-owner or named beneficiary allowing your will to distribute the asset, or if it is a “non-probate”asset, which is an asset that will pass directly to the named beneficiary. It is wise to have the location and contact information for the assets you may own:

• Checking account(s)

• Saving account(s)

• Money Market accounts

• Certificate of Deposits

• Life Insurance policy

• Disability Insurance if it has a death benefit

• Digital currency and where it is held

• Business formation documents, such as LLC, LLP or S-Corp agreements

• Brokerage Accounts

• Retirement Accounts (IRA, 401K, etc)

• Pensions plans with a death benefit

• Deeds to your home, cabin, farm, etc.

• Title to your vehicle(s) and or boats

• Long-term care insurance with a death benefit

• Custodial or UTMA accounts set up by you for minor children

• 529 plans or other college specific saving vehicles

• Royalties for published works

• Health Savings Accounts

• Stocks

• Savings Bonds

• Valuable hobby or professional equipment

• Contents of a safe deposit box (i.e. valuable coin collection)

Liabilities: Your PR will also need to locate and notify each liability you maintain. It is wise to keep documentation and contact information for:

• mortgage

• vehicle loans

• student loans

• credit card debt

• home equity line of credit

• loans against retirement accounts

• personal loans

Thank you for reading.  Remember, a blog is NOT a lawyer nor is it legal advice.  This post is meant to spark conversation, discussion and reflection.  Please consult with a licensed attorney in your state of residence for advice specific to your situation.  Thank you and be well.

Book Review -- From Here to Eternity: Traveling the World to Find the Good Death by Caitlin Doughty

Book Review -- From Here to Eternity: Traveling the World to Find the Good Death by Caitlin Doughty

By Melinda Gustafson Gervasi

November 5, 2021

Keeping with the ghoulish nature of the past week, Halloween and Day of the Dead, I picked up Caitlin Doughty's book, From Here to Eternity: Traveling the World to Find the Good Death.  Published in 2018 the book chronicles her travels around the globe to experience death rituals different from those commonly practiced here in the US and Western Europe.  The reader travels with the author to Mexico, Japan, Bolivia, Indonesia, Spain and other destinations.  

Without question this book is a macabre read.  Some of the practices explored, such as decomposition of the human body in a literal compost heap are intriguing to those interest in a low carbon end to their earthly time.  However, other experiences may be more challenging to read about.  For example, the "ma'nene' " in Tana Toraja, Indonesia where relatives have an annual visit with a mummified loved one, was unsettling for me as a reader.  

Overall I would rate this book a 3 out of 5.  Lack of practicality for many of these ancient practices stuck out to me.  Also, it is a sad but true fact that many families contain a rate of dysfunction or unhealthy relationships where the intimacy of washing a corpse would be impractical if not traumatic for the survivors.  Doughty's prose are easy to read and vivid.  For anyone interested in an anthropological exploration of death and funerals, this book would be an excellent investment of time.  

Sample Letter to the Trustee of a Child's Trust

Sample Letter to the Trustee of a Child's Trust

By Melinda Gustafson Gervasi

October 22, 2021

Today I dip into my own files to share the sample letter I give to all of my clients who have opted to create a testamentary trust for their children.  What is a testamentary trust?  It is a will that allows a parent to appoint the Personal Representative (known as an Executor in other states), a Guardian for a minor child, distribute their probate assets, and includes the recipe for a trust to be created if both parents die.   This is a way to transfer your assets into a trust if you die, managed by a trustworthy trustee you appoint, until an age you set for the children to reach before taking control of the money themselves.  Children can request funds from the trustee for expenses, but the trust has to agree to the expenditure.  Providing guidance to that trustee on what you think should be paid for is crucial when making this trust the most useful if you die before your children are old enough to manage the funds on their own.  

Sample Letter to the Trustee

Providing additional information on your wishes for how trust monies should be used in the event the trustee is appointed by the court upon your death is an excellent way to enhance your estate plan. While advisory only, additional information on your intentions may reduce emotional stress and financial expenses if and when the trust is implemented.  Topics to consider include, but are not limited to:

    • Investment – preferences on what assets are liquidated or not, what should happen to the family home, use of “target date funds”.

    • Use of funds if there are multiple children – will younger children require more funds because certain events have not yet occurred for the younger child, but have occurred for an older child.  For example, a 16 year old may need full assistance for college tuition, but their 23 year old sibling has finished school and has already received financial assistance from the parents. 

    • Daily Lifestyle – provide a list of daily activities you feel are important to be paid for from the trust.  For example, paying for the family pet(s), providing cell phone service to a child, or funding private lessons for a child’s hobbies / interests.

    • Education – discuss how you wish the funds to be used to support education: tuition, tutors, test prep, computer purchases, etc. 

    • Travel – discuss if and how trust monies should be used to pay for a child to travel and/or to pay for relatives to travel to visit a child.  Think about what “travel” means – is a day trip to the Magnificent Mile in Chicago or a night in the Wisconsin Dells “travel”?

    • Family traditions and values – mention any family traditions or values that the trust monies should support.  For example, is attending a religious or secular summer camp an annual occurrence you wish to be continued?

    • Holidays and gifts.  How, if at all, should trust monies be used to celebrate holidays, birthdays and gifts.  Are there specific items you desire a child receive upon reaching a certain age or life milestone.  

    • Milestones – would you want certain milestones to be celebrated with purchases, such as a car at 16, paying for all or parts of a wedding, providing a down payment on a first home, or funding a business start-up.

    • Restrictions – what, if anything, should trust funds NOT be spent on.  Keep in mind other sources of money your child(ren) may have if you have passed away (Social Security Survivor benefits, provision by your former spouse, a trust established by another family member such as a grandparent).

 

The author's children back when she was still taller than her kids. 
M. Gustafson Gervsi 2021

5 Overlooked Items To Include With Your Estate Plan

5 Overlooked Items to Include with your Estate Plan

By Melinda Gustafson Gervasi

October 11, 2021

Estate planning is the act of taking control of paperwork related to illness, death and taxes.  The obvious documents include things such as a power of attorney for health care, durable power of attorney for finances, beneficiary forms, a will, and sometimes a trust.  If you are looking to have an well organized plan that offers easy access to documents to ease the burden of your final affairs on your loved ones, consider including the following with these otherwise obvious documents:

1. Copy of your state and federal income taxes for the past 3 - 5 years.  The include information on your accountant and assets that generated a loss or gain that may not otherwise be found;
2. Deed to your home, cabin, or other real estate.  The deed will be needed at some point during the handling for your affairs, and finding it now allows you to review the wording to confirm it says what you think it says.  For example, is the cabin you inherited from your mom in your name or your name at that of your spouse?  That wording may or may not cause problems for your surviving spouse;
3. Copies of your health, disability, life, and burial insurance.  Having copies of these documents provides the person/entity handling your estate with documentation of what your policies did and did not cover;
4. Instructions on personal possessions that may not be of obvious value to your loved ones.  For example, my husband is a hardware electronics engineer with an entire work area full of gadgets.  I've paid enough attention to know some of those instruments can be worth tens-of-thousands of dollar.  Yet, I know that if I were grieving his untimely death I may not have enough mental recall to know which ones were and were not worth any significant value.  What possessions might you have that would be worth the time and effort to liquidate but not be obvious?
5. Copies of beneficiary forms for your retirement and other investment accounts. Beneficiary forms are essentially a contract between you, the owner, and the company that holds and manages your asset, stating where it will go upon your death.  When you maintain a copy of the form there is proof in your records of where you designated the asset to pass upon your death.  When you fail to maintain a copy of the form, you are leaving it up to the company to document its existence.  Mistakes can and do happen.  One too many times I have seen a loved one struggle with the fact a beneficiary form for a life insurance policy cannot be found and it is distributed in a manner that contradicts what the loved one had been told.  

Image by M. Gustafson Gervasi, 2021

Thank you for reading.  Remember that a blog is not legal advice, but rather a tool to spark discussion and conversation.  Please seek legal counsel from an attorney in your state of residence for advice specific to your situation. 

16 Lessons Learned: Estate Planning & Probate Practice

16 Lessons Learned: Estate Planning & Probate Practice

By Melinda Gustafson Gervasi

October 1, 2021

Today my practice is old enough to have its own driver's license -- #16!  Since 2005 I have been fortunate to counsel clients in my hometown of Madison, Wisconsin on issues related to estate planning and probate.  Today I pause to share 16 lessons I have learned while navigating my practice:

1. People often need a push to make the call to get on an attorney's calendar to complete an estate plan.  International travel and the arrival of a baby used to be the biggest nudges, then COVID 19 arrived to spur record numbers of people to take action and make a plan;
2. It is immensely easier to make decisions about who will do what and where assets will go when you are NOT also dealing with a severe illness.  Don't wait to plan until you have a stage 4 cancer diagnosis.  Sadly, it is the number one thing to prompt clients to call;
3. The type of estate planning vehicle (will versus trust) is less important than who you put in charge to handle your final affairs.  If that person is not the right person for the job it will be a mess no matter if you funded a trust or used a simple will;
4. Organized paperwork is a huge gift to leave your loved ones -- the greater the mess, the more they'll stress;
5. People think they know where their documents are until they need them.  Double check today to avoid a crisis in the middle of a crisis;
6. No one will be the perfect fit to raise your children if you die, but having no plan is far worse.  Aim for 85% in terms of a good fit and nominate that person(s);
7. We cannot really know how a person will  handle functioning as a health care agent or personal representative until we observe them acting on another's behalf.  You can always amend your plan if that person no longer seems to be a good fit.
8. Grief exacerbates family tensions.  There are two sisters out there who will never speak to one another again because of an armoire. But it really isn't about the armoire, it is about so much more that was never really faced;
9. Estate planning is about taking control of the "who" and "what", but not the "when";
10. Do not wait to travel until you retire. Tomorrow is not guaranteed;
11. We no longer memorize out loved ones phone numbers.  Write them down so they can be accessed when they are most urgently needed;
12. Family cabins and farms are not just pieces of land, they are a family member.  Plan accordingly;
13. You can lead a horse to water but not make it drink.  Sometimes you need to let the chips fall where they may and then get to work.  In other words, you cannot compel your loved ones to do an estate plan;
14. Leaving all of your assets to your "responsible" child who will "take care of the others" is a horrible idea, and one that may cause that responsible child a lot in gift taxes;
15. Laws related to estate planning and probate and state specific, unlike immigration, a federal law, that is the same from Maine to California.  Most people are not aware that what their sister in Maryland wrote may not be appropriate for one living in Wisconsin; and
16. People are compelled to use the same estate planning documents as their parents and grandparents even though their lives are drastically different. 

Bonus #17 -- In Door County, Wis there is a white fish known as the "Poor Man's Lobster" or Lawyer.  This sign is from Oct. 2009 when my family enjoyed a few days in the lovely area of my home state. 

Thank you for reading.  Remember that a blog is not legal advice, but rather a vehicle to spark thought and discussion.  Please consult an attorney in your state of residence for legal advice specific to your situation. 

9 Things to Mention When Writing Instructions to a Trustee for Children

9 Things to Mention When Writing Instructions to a Trustee for Children

By Melinda Gustafson Gervasi

September 22, 2021

With a flourish you date the document and scrawl your signature on the line hovering above your name typed in Times New Roman font.  You drop the pen, sit back, let out a breath and say "we'll, I'm glad that is done".  In that moment you have created (or updated) your will.  Your children, age 13 and 11, now have legally appointed guardians if you and your spouse were to die.  The document also creates a trust fund to hold assets for the kids if they are orphaned before the youngest is age 30 (an age you set).  You are ready to cross "draft a will" off of your to-do list and get back to living life!

It's true. The will is dated and signed (hopefully in accordance with the witnessing requirements of your home state), but is it really ready-to-go? If both you and your spouse were hit by the proverbial bus on your way home, would the trustee you nominated in your will really understand how you meant for the money to be spent?  They can guess.  But you can also push just a bit harder and make it all easier by recording some of your thoughts and intentions.  

If you want a will that really does as much as it can to ease the cost and suffering of an untimely death, I suggest your buy yourself a pumpkin spiced latte, microbrew, or a heart healthy glass of red wine and work through these 9 points.  

1. Investment.  Do you have a preference on what assets of yours are liquidated?  Should some assets, such as a home or stock be held in the trust and not sold;
2. If you have more than one child.  What if your older child is done with college and that expense has been covered, but you have a senior in high school facing four years of large tuition.  How would the trust be used?
3. Daily Lifestyle.  Do you think the trust should pay for your tween's cell phone and data?  What about your child's passion for tennis or guitar?  How should trust fund monies be used to pay for daily living and hobbies?
4. Education.  Most people would say "yes, use the trust to pay for education".  What is "education"?  Is it tuition, transportation, dorm fees, computer equipment, tutor fees, test prep services?  
5. Travel.  It might be obvious that the funds should be used to continue a life focused on travel.  But what about the trust paying for extended family to travel to visit a young child?  For example, should the trust pay for Grandma to fly from Baltimore, Maryland to visit a 3 year-old grandchild in Madison, Wisconsin?
6. Family Traditions and Values.  Ask yourself if the trust monies should support long-held family values, such as annual summer camp at a religious or secular facility.
7. Holidays and Gifts.  How, if at all, should the trustee you trust monies to pay for gifts and celebrations associated with holidays and birthdays.
8. Milestones.  What is your opinion on trust fund resources being used to buy a car when a child turns 16 or marries at 23 or wants help with a down payment on a first house?
9. Restrictions.  Do not overlook the question of things you do NOT want the trust to pay for, such as a cult your teenager has recently discovered or activities that could be funded by an adult child working or a minor child using Social Security Survivor Benefits.

Buses in Panama City, Panama. M. Gustafson Gervasi 2019

Lost 401Ks and Pension Accounts

Lost 401Ks and Pension Accounts - In Estate Planning Everything Needs a Home

By Melinda Gustafson Gervasi

July 13, 2021

Pop culture routinely tells us that the human mind is meant to be creative, solving problems, and dreaming up new ideas.  The brain, they claim, is not meant to hold a laundry list of to-do items or an inventory of our assets.  Attempts to go against the grain inevitably leave us standing in the produce aisle of a grocery store scratching our heads about what items we need to buy in order to fix dinner. 

The same pit-fall captures quite a few of us when it comes to our retirement dollars.  According to CNBC from 2004 to 2013 more than 16 million 401K and pension accounts, with a balance of $5,000 or less, were left with a former employer.  In total, $8.5 billion was lost and not usable by retirees.  As a result, there is a current legislative proposal aimed to help connect individuals with lost accounts through a national “lost and found” database.  Read more of CNBC's reporting and the proposed legislation here.

One day there might be a national database to track lost accounts.  However, right now there is not.  Yet many of us have old retirement accounts scattered across the array of employers and careers we amass over decades of work.  If you prefer to take action now rather than pin your hopes on a "one day" government program to help, I recommend finding a home for all of your financial information.  Start with a labeled spot.

Why label a place for things?  Well, quite simply it works.  Earlier this summer my husband and I celebrated a wedding anniversary.  He splurged (well, a splurge by our standards) and bought a store card.  I on the other hand went for a gift.  I placed labels in different parts of our home to give him a guide to wear items "belong".  He had always said he wished our home were more like his engineering lab.  So I went with it, and it worked.  All it took was a label for "razor & shave cream" and "tooth brushes" for him to actually put them away after using them in the morning.  One label, and boom, I no longer found myself picking up his items.  

Perhaps this gives you a good laugh or a shake of your head at our odd ways, but pause on the idea for a moment.  Do you have a labeled home for your retirement account documents?  If a trusted member of your family or friend network walked into your home after you had a sudden illness or death, would they be able to easily identify assets that will be of great importance?

Being organized with your important papers is a huge gift to your loved ones.  While it may not eliminate the work of handling your final affairs, a bit of organization on your part can go a long ways towards easing the burden on your loved ones.  So, buy yourself some mailing labels and get to work!  Organize your file cabinet or start a 3-ring binder to hold important paperwork and documents.  Start with the big picture: sort them into illness, death, and taxes.  Those three concepts are at the core of estate planning and can jumpstart your organization efforts.

Thank you for reading.  Tune in during the months ahead as I delver deeper into the topic of having an organized and well-maintained estate plan.

The author, Melinda Gustafson Gervasi, with her equally frugal spouse, Charles.

Remember, a blog is not meant to convey legal advice.  Instead, it sparks thought and conversation.  Always seek legal advice from an attorney in your state of residence for counsel on your specific situation.

Estate Planning - Does Your Filing System Make Sense

Estate Planning - Does Your Filing System Make Sense

By Melinda Gustafson Gervasi

June 14, 2021

What makes sense to you today does not mean it will make sense to others or even to yourself a few years down the road.  This is problematic for your important documents, including your estate plan.  A half-dozen years or so ago I answered my phone to hear a client having a mini-panic attack.  We had worked together a year or two prior, and now the client simply could not find the estate plan we had created.

"I looked EVERYWHERE!  It's not under A for Attorney.  It's not under E for Estate Plan.  And it's not under W for Will!  I guess I am going to need you to redraft everything for me......"  With a sigh the client scheduled a meeting for the following week.  Fifteen minutes later the client called back, this time with joy.  "I found it! It was under D for Death!!!!"

Here are a few take-aways from that client call:

1. Not being able to find your powers of attorney or will is the equivalent of having no plan.  You really should know where the documents are, specifically originals;
2. A filing system that makes sense to you will not necessarily make sense to the people who will need the documents.  Once you have your plan in place, share essential details with those you have nominated in the paperwork.  Sometimes this means giving copies to those named; and 
3. What makes sense to you today may not down the road.  Illness, grief, dementia, a decade of not looking for the papers are all a few of things that may delay or prevent you from locating the documents when they are needed.

In law school I was told to write a brief as though a 12 year old were reading the filing.  Why?  Judges need to read something quickly and pull out the key concepts.  I suggest the same approach when organizing and maintaining your estate plan.  These documents will most likely be needed during a severe illness or death. This is a time of stress and grieving.  Not everyone will be thinking as clearly as they might be on a beautiful, uneventful day in June.  They will be operating in storm-like conditions. Keep it simple and to the point.  Place it in a logical place.  And when it doubt, give your system a trial run with a trusted 12 year old in your life.

The more organized you are with  your estate plan, the less stress, time and expense you and your loved ones will face during an illness or death.  Follow my Blog Series: Your Compass as I help you navigate organizing and maintaining your estate plan.  

Which Way?  Image by M. Gustafson Gervasi, 2021

Thank you for reading. Please note that a blog is not legal advice nor is it your attorney.  A blog is meant to spark though and discussion, nothing more.  I urge you to seek legal advice from a licensed attorney in your home state specific to your life situation.  

Estate Planning in the Age of Misinformation

Estate Planning in the Age of Misinformation

By Melinda Gustafson Gervasi

June 7, 2021

As the academic year comes to a close, I reflect on the many concepts my children studied during a year of virtual learning.  Math has gone from numbers the symbols used in geometry and algebra and social studies as moved beyond memorized State Capitals to more in-depth critical analysis skills.  Primarily the validity of source information.  

As my daughter finishes her elementary school years I read along as she studied the last novel of her 5th grade education -- The Westing Game by Ellen Raskin.  Published by Puffin Modern Classics in 1978 the book plunges the reader into a mystery surrounding the will of an eccentric millionaire who lived in town.  Sixteen named heirs compete with each other to determine who killed the testator, Sam Westin, with the winner set to claim the $200 million estate.  Well I wasn't 5 pages into the book and rolling my lawyer eyes at the absurd "legal proceedings".  I set aside my critical eye, enjoyed the fiction for what it was, and had lovely discussions with my daughter as her class read along.  However, it hit me that 5th graders are reading about estate planning and probate with no disclaimer that it is utterly false.  From a very young age the general public is fed information on an area of law that touches every single person's life.  

As you gather information for yourself on estate planning and probate, I urge you to pause and consider your source.  For example:

• Your lovely younger sister who lives in New Mexico tells you, a Wisconsin resident, all about the process she used to set up an estate plan.  Remember, estate planning and probate laws are written by STATE legislatures.  That means we have 50 different sets of laws on this topic.  While some concepts may be the same, the laws are likely quite different
• The banker you have worked with for the past decade keeps nudging you get a living revocable trust.  While he likely means well, he is not a lawyer.  Routinely I work with clients to untangle a mess of joint accounts or beneficiary forms that do not follow their wishes, but were recommended by a financial advisor/banker.  Take the suggestions into consideration, but check with an attorney before signing any documents.
• Acknowledge it's fiction when you are watching a movie, TV show, or reading children's books (they always kill off the mom!).  What makes for entertaining or suspenseful writing does not make it legally sound. 

Image by M. Gustafson Gervasi 2021

Best wishes for your summer.  Thank you for reading. Remember that a blog is meant to spark thought and discussion.  It is not legal advice nor is it your lawyer.  Always consult with a licensed attorney in your home state for advice specific to your situation.

When to Update an Estate Plan

When to Update an Estate Plan

By Melinda Gustafson Gervasi

June 1, 2021

Image by M. Gustafson Gervasi 2021

June has arrived.  Gone are the drab brownish lawns and tree branches.  Lush green foliage is juxtaposed by the light blue skies.  When you live in Madison, Wisconsin, with is harsh winters and drastically different seasons, you tend to stop and appreciate when the verdant landscape arrives on your doorstep.  June also ushers in three common life events that illustrate times when it may be appropriate to update your estate planning documents:

• Graduations -- has a younger person in your life reached a more mature life stage to allow them to serve as your health care agent, personal representative, etc;
• Weddings -- has someone nominated in your estate plan had a name change?  If it has been "awhile" since you updated your documents, this name change may be the extra nudge towards updating your documents; and
• Retirements -- have you moved out of state?  If so you may want to examine your documents to find out if they still meet your needs and the legal requirements of your new residence. 

In my opinion, estate plan updates are necessitated by life events rather than the pure function of time.  Pause, smell the flowers, and give a little extra thought to what life events have unfolded in your circle that warrant the energy to update your estate planning documents.

Thank you for reading.  Please remember that a blog is meant to spark thought and discussion.  A blog is not a substitute for a lawyer nor is it legal advice.  It is best for you to work with an attorney in your home state for advice specific to your situation.  And if you find my writing informative, consider sharing on your social media via the buttons below.  

Estate Planning: develop a comprehensive list of your assets

Estate Planning: develop a comprehensive list of your assets

By Melinda Gustafson Gervasi

May 24, 2021

Frenzied frustration, that is how I describe the adolescent emotions evoked when I played Whack-A-Mole at the Dane County Fair or random arcade.  Armed with a black mallet, the goal was to whack moles randomly popping up out of the half-dozen or so holes.  You would hit one another another would taunt you from the corner of your eye.  It was frenzied.  It was frustrating.  Yet, I loved that game and the challenges it presented.  Today as an estate planning and probate attorney that feeling emerges in each and every probate I assist with.

Frenzied because someone has just died and the surviving family and/or friends want to move quickly to "take care" of things.  Sometimes a large family is all together for a funeral or memorial service, combining that event with cleaning out the deceased's home.  Grief, memories, surprise, and confusion hover overhead while the Personal Representative (Executor in other states) attempts to get a handle on the finances.

Frustration soon arrives on the scene.  Banks refusing to release any information on the deceased's accounts.  Credit card companies demanding court authorization before turning off a cell phone.  Combing through old tax filings and statements, people find false leads on what is a current asset that were sold long ago. 

Grieving the death of a loved one will never be easy.  However, a bit of organization in your own financial life may reduce the number of Whack-A-Mole moments your Personal Representative or Executor will face while the handle your final affairs.  Start by stacking stock of what you own, everything you own, and record it in a format that can be easily accessed.  My personal favorite is a three-ring binder that holds everything related to Illness, Death and Taxes behind tabs.  Here is a check list for assets you might overlook:

• Checking account(s)
• Saving account(s)
• Money Market accounts
• Certificate of Deposits
• Life Insurance policy
• Disability Insurance if it has a death benefit
• Digital currency and where it is held
• Business formation documents, such as LLC, LLP or S-Corp agreements
• Brokerage Accounts
• Retirement Accounts (IRA, 401K, etc)
  
• Pensions plans with a death benefit
• Deeds to your home, cabin, farm, etc.
• Title to your vehicle(s) and or boats
• Long-term care insurance with a death benefit
• Custodial or UTMA accounts set up by you for minor children
• 529 plans or other college specific saving vehicles
• Royalties for published works
• Health Savings Accounts
• Stocks 
• Savings Bonds
• Valuable hobby or professional equipment
• Contents of a safe deposit box (i.e. valuable coin collection)

Did I miss something?  Please leave a comment if you have an asset to list that I missed!  

Thank you for reading.  Remember, a blog is meant to spark thought and discussion; it is not legal advice.  Please consult a licensed attorney in your state of residence for advice specific to your situation.

Tips for Managing Your Beneficiary Forms

Tips for Managing Your Beneficiary Forms

By Melinda Gustafson Gervasi

April 12, 2021

Image by M. Gustafson Gervasi, 2021, Dandelions!

Signs of Spring 2021 are popping up all around us.  Before warmer weather pulls you outdoors and offers an abundance of activities, there is one Spring Cleaning Task I urge you to consider.  Making sure your beneficiary forms are in order. 

I few weeks back I contacted my Brokerage with a question about its management fees.  The call was short, efficient, and eye opening.  The call started with my questions about how management fees are calculated and ended with the representative telling me that one of my IRA's did not have a beneficiary form listed.  "Seriously?" was my response.  I knew with certainty that I had completed those beneficiary forms, taking great care to name my spouse as primary and our children's trust as the contingent.  "No Ms. Gustafson Gervasi, I am sorry.  We have no record of a beneficiary form" the representative chimed.  Routinely I caution my clients about this problem with financial institutions, and here my own broker had made an error.  Somehow or other the beneficiary form was not received or uploaded.  Sadly, this happens far too often. 

Here are a few thoughts on managing your beneficiary forms:

• List all of your assets that have (or should have) named beneficiaries;
• Typical assets with beneficiary forms include: IRAs; 401Ks; Roth IRAs; Annuities: Pensions: Brokerage accounts, life insurance; and Health Savings Accounts;
• Confirm each beneficiary form says what you think it says by contacting the financial institution;
• Gather hard copy proof of the beneficiary form (screen shot, letter from the company, etc).  This gives your estate proof of the contract (A.K.A. a beneficiary form) if you die and the company states there is no form on file.  Keep this proof with your estate planning documents.

Managing your beneficiary forms is key to your estate planning.  Out of date forms or ones never recorded can upend your estate plan and your wishes may never be realized.  

Remember a blog post is not legal advice.  It is meant to spark thought and discussion.  Please contact a licensed attorney in your state of residence for advice specific to your situation.  Thank you for reading, and please share if you found this article helpful.

 

Pandemic Pets -- Do You Need a Pet Trust?

Pandemic Pets -- Do You Need a Pet Trust?

March 26, 2021

By Melinda Gustafson Gervasi

Georgie in Wisconsin

Americans adopted a record number of pets during the COVID 19 pandemic.  Georgie joined the household of our dear friends towards the end of 2020, a few short weeks after being rescued from the streets of Austin, Texas. The rescue organization estimated his date of birth as May 5th.  Our families are looking forward to years celebrating Cinco de Mayo and toasting Georgie.  

My social media feed now overflows with cute pet pics and queries about traveling with dogs, hiring pet sitters, and tips on preparing our new family members for the days when their devoted humans return to schools and workplaces.  Of course, me being me, I wonder -- has anyone asked themselves if their new family member necessitates updating their estate plan to include a pet trust?

What is a pet trust?  In general terms (estate planning law varies from state to state) a pet trust is language in a will that creates a trust fund if certain conditions you set occur.  For example, if my spouse and I both die, then a pet trust is created.  That fund then holds money you directed to the fund in your will as well as your pet(s), which are technically considered property.  Pet trusts allow you to name a caretaker and manager of the money until your last pet has passed away.  

When should you consider setting up a pet trust?  Here are few suggestions garnered from 15 years of counseling clients and writing a few pet trusts (including one for our 3 cats):

1. Your pet has health or care needs that would be a financial burden on the caretaker you wish to nominate. I have written an abnormally high number of pet trusts for poodles because of their expensive grooming costs!
2. Your pet has a long lifespan?  Parrots, iguanas, and turtles may outlive you by years if not decades?  
3. You want to keep your pets together.  Rehoming a single pet when someone has died can be a challenge. The pool of potential caretakers drops if your goal is to keep your 4 dogs and 1 cat in the same household. When a large pet group needs a new home, having a small pot of money to ease the transition may open up more doors.

Not everyone needs to go to the extent of creating a pet trust.  However, every pet owner should ask "if something happens to me/us, where will [insert the name(s) of your beloved pet(s)] go?  Maybe all you need is a list of names with contact information tucked in with your estate paperwork.  Or maybe, you need something more.

Remember, a blog is not legal advice.  Rather, it is meant to spark thought and discussion.  Please consult a licensed attorney in your home state for counsel on your specific situation and state requirements.  Thanks for reading!

What is a Beneficiary Form?

What is a Beneficiary Form?

March 24, 2021

By Melinda Gustafson Gervasi

Every day I work with clients to create or update an estate plan.  Over the years I have learned many things from my clients.  One of the standout lessons is that many people are fuzzy on what a beneficiary form is.  Beneficiary forms are a critical piece of an estate plan because they control the distribution of certain assets  Here are a few key concepts I share with clients when educating them about this area of estate planning:

• The forms tell your financial service company where those specific assets will go upon your death. 
• Normally you can list a primary beneficiary (or beneficiaries) as well as contingent(s).
• But for a few exceptions, the person(s) named on your beneficiary form will receive those funds no matter what your will or trust might say.
• Name the person(s) you intend for the assets to belong to on the form rather than a person who will "take care of handling the money".  The person on the form gets the asset and can do as they please with the asset.  If the person meant to "handle things" dies after receiving the funds, the asset will then pass according to his/her estate plan.
• Common financial assets that can be distributed using a beneficiary form include, but are not limited to:
• Life insurance
• Traditional or Roth IRAs
• 401k, 403b, etc.
• Pension plan
• Annuity 
• Brokerage account
• Digital content, funds or tools
• Do not trust your financial company to keep a record of your beneficiary form.  Companies lose them far too often (check future posts on this blog for my personal story on a Roth IRA of mine that all of a sudden had no beneficiary form). I recommend a screen shot, print out, or some hard copy proof showing your beneficiary designations for each account.

Now would be a wise time to take out the paperwork or pull up online the files related to your financial assets.  Ideally, you can avoid an estate planning stumble along with the facial expression of my dear husband, who does his best playing football with are very athletically inclined 12 year old son. 

Oh no! Image by M. Gustafson Gervasi 2021

Thanks for reading. Remember, a blog is not legal advice nor should it be taken as such.  Please seek legal advice from a licensed attorney in your state of residence for counsel on your specific situation.  This post is meant to spark thought and discussion.  It is not dispensing legal advice.    

What Is A Personal Representative?

What Is A Personal Representative?

By Melinda Gustafson Gervasi

March 17, 2021

Are you delving into writing your own will?  Chances are you might be struggling with some of the legal jargon associated with Estate Planning & Probate.  Take a short pause and educated yourself on the various legal terms to minimize confusion or misunderstanding when you draft a document.  Here are a few suggestions for deepening your knowledge of a key role in an estate plan, the Personal Representative

What is a Personal Representative:  This person is appointed by a court to administer the estate of a deceased individual.  In my home state of Wisconsin, the term Personal Representative is used.  However, other estates use the more familiar Executor or Executrix.  There are 50 different states in America.  Each has it's own laws governing estate planning and probate since the topic is a state's issue rather than a federal issue, such as immigration.  As a result, you need to determine what term is used in your state of residence.  Precision is key -- I have heard people refer to their "executive" or my personal favorite, their "executioner" -- both may cause a slight bit of confusion when a probate court reads that will.

Why it is important.  The Personal Representative's job is to handle the final affairs of the deceased.  This may include selling assets, filing income taxes, distributing personal and or digital property, paying bills of the deceased, and emptying the contents of the decedent's home.  The Personal Representative has a fiduciary responsibility to the estate's beneficiaries. Many people wonder if a will or trust would be the best vehicle to use in estate planning; they want what will be easiest on their loved ones.  Personally, who you name to handle your final affairs is far more important than what type of document you use.  If you nominate the wrong person, it will be a mess.

Who is an ideal candidate.  My suggestion when figuring out to name as your Personal Representative (or Executor) is to aim for Switzerland.  Who is neutral, precise, and efficient.  Many people assume their eldest child will be the natural selection.  Caution -- is that person well suited to handle financial matters, taxes, and family discussions?  Sometimes a party outside of the immediate family will decrease the chances of family drama occurring when the estate is being finalized.  Precision is key because in the end, a Final Accounting will be submitted to the court showing every penny that went into the estate (sale of home and car, bank accounts, interest earned, US saving bonds, refunds, etc.), and where every penny went (bills, mortgage, taxes, distribution to heirs, etc.). And by "every penny" I literally mean every penny.  Precision is key.  And last, who is efficient?  Here in Wisconsin the court system assumes a probate will open and close within 12 months.  That is not always the case if there are tax filing delays (which is common for 2020 and 2021 filings), and an extension can be granted.  Who can stay on top of the paperwork?  Who can tackle this job while grieving?  If you sit back and realize "no one" in my circle of family or friends meets this criteria, know you can look to an institution.  For example, the wealth management division at your bank or an accounting firm.

Image by M. Gustafson Gervasi 2021

It's never too early to nurture precise habits in the next generation.  To the left, my son working on his throwing aim.  Below, my daughter being precise on the figure skating ice. 

Image by M. Gustafson Gervasi 2021

Thank you for reading.  Remember, a blog is NOT legal advice.  Rather it is meant to spur thought and discussion.  Please consult a licensed attorney in your state of residence for advice on your specific situation.

What Makes a Good Estate Plan? Being Organized

What Makes a Good Estate Plan? Being Organized

By Melinda Gustafson Gervasi

March 12, 2021

What is that old saying, life happens suddenly on a Tuesday morning?  For me, life happened on a Friday morning earlier this month.  Settling down on our sofa with a hot cup of coffee and a new book, my plan was to start the day reading.  Then the phone rang.  Yes, an actual call.  "Husband" flashed across the screen.  

Me: "Hey, what's up?  Did you find your wallet?

Husband: "......Melinda?" came a dazed voice,  unlike my spouse's energetic way of speaking.

Me: "What's the matter?" came out of my mouth as my gut told me something was wrong.

Husband: "um, um,.....I fell off of my bike".  After 16 years together the call I dreaded had arrived.  I am married to a bike commuter, and year-round bike commuter.  The weather had just begun to warm up and he had returned to his 8 mile bike ride to work, using the recommended studded tires. 

Me: "Where are you, what's happened, do you need help?" 

Shifting into lawyer mode I asked a series of very pointed questions and determined that he needed to be picked up for medical attention.  I quick call to our primary care provider resulted in the directive of "head straight to the ER".  Once I had found him (he had been in the middle of a stretch of bike path not accessible via car) and we were at the hospital I learned what had happened in detail.  Biking slowly along the path keeping an eye out for his wallet he thought he'd dropped the night before, he made a left-hand turn onto a bridge and hit an invisible patch of ice. It was enough to send the rear tire flying into the air, tossing him up and off the bike, with him landing on the bike handle.  Abdominal trauma is taken seriously by the UW Hospital ER (thank goodness).  Due to COVID-19 restrictions I was not able to stay.  That afternoon he called saying they were keeping him overnight and asked for a bag with some personal items and clothing. "Oh, hey, the hospital also wants a copy of my power of attorney for health care, can you bring it?"  

In under 5 minutes I had a copy of his up-to-date power of attorney for health care in my hands and headed to the hospital along with the bag I had prepared.  Not knowing if emergency abdominal surgery was in his immediate future, I was quite shaky.  However, being able to put my hands on his POA gave me a small feeling of comfort.

We never know when life will throw us a curve ball.   Many things in life are out of our control.  Having an organized and up-to-date estate plan is under our control.  What works for our personal Estate Planning documents is a 3-ring binder with subject dividers.  Instead of saying English, Math and Science, this binder says: Powers of Attorney; Beneficiary Forms, Will; Financial Assets, etc.  When the call came I knew exactly where the binder was, flipped to the POA section, and pulled out a copy ready to be delivered to the hospital.

When organizing your documents, here are some broad topics your binder (of file cabinet, etc.) should address:

• Powers of Attorney, including extra copies to provide if requested.
• Contact information for key people in your life. For example, relatives, employer (or employees), pet sitter, accountant, child care provider or school.
• Disability and or Long-term care insurance coverage.
• Burial information.  For example, Wisconsin's Authorization for Final Disposition, contact for your place of worship, cemetery plot documents, and elements to include in your obituary. 
• Will and/or Trust.
• Complete listing of your financial assets with documentation/statement.  Examples include: deed to your home or other real estate holdings; life insurance, retirement accounts, brokerage accounts, banking services you use, Health Savings Accounts, Stocks, as well as a listing of creditors (credit cards, mortgage, auto loan, student loans, etc).
• Last years federal and state income tax filings.
• Listing of online accounts, such as: social media, email, rewards programs, and automatic billing for utilities, etc.
• Contact information for those who should know if you have passed away.  I include a copy of my most recent holiday card mailing list.

Image by M. Gustafon Gervasi 2019

Thank you for reading.  Please remember that a blog post is not legal advice.  Rather, it is meant to spark thought and discussion.  It is vital for you to consult with an attorney in your state of residence for advice on your specific situation.  Be well, stay safe!

What Does "Estate Planning" Mean?

What Does "Estate Planning" Mean?

By Melinda Gustafson Gervasi

March 3, 2021

Mystified may be the word many people opt to describe how they feel when they hear the phrase "Estate Planning".  For many the phrase evokes images of expensive lawyers sitting behind mahogany desks  serving clients with a seven-figure net worth.  When a person cannot insert themselves into that image, they dismiss "estate planning" for the wealthy and move on to the next item on their perpetual to-do lists.  Sadly, this is not true and learning the reality of estate planning can be a rude awakening when life reels up and places you or a loved one in the Emergency Room on a random Friday morning.  Estate planning is for everyone over age 18.

Estate planning boils down to three things, planning for: illness, death and taxes.  The documents that comprise your estate plan may look very different than  the plans of America's Top 2%, but they will address illness, death, and in some cases taxes.  An estate plan is basically a process by which you take control and make decisions about who has the authority to act (either if you are alive and too sick to act or at death) and where assets will pass upon your death.  These decisions must follow the laws of your state of residence.  Common types of documents that make-up an estate plan include: will, power of attorney for finance, power of attorney for health care, and in some cases a trust (of which there are dozens of different types).

The United States is comprised of 50 different states, and each has its own set of laws related to estate planning.  Terminology, requirements and responsibilities vary across state lines. It is essential you learn about the laws of your state and how they impact your situation.  Ideally a lawyer would assist you in that process.  A blog post is not a lawyer nor does it provide legal advice.  It is meant to get you thinking and talking about important topics.

Being overwhelmed by all that goes into an estate plan, many people are tempted to leave the project for another day.  I urge you to keep moving forward.  Start by educating yourself about the basics in your state.  Caution: many of those free lectures on how to avoid probate AND get a free fish diner are nothing more than scams run by sales people who are not licensed attorneys.  My personal preference is to find an attorney focused on the area of estate planning who also emphasizes education during your work together.

Thanks for reading.  If you are up for a video, you can view a recent Estate Planning 101 seminar I gave in a virtual format at the end of 2020.  It is educational, and does not provide legal advice.

Will Safekeeping - Dane County, Wisconsin

Will Safekeeping

Your Compass Series

By Melinda Gustafson Gervasi

February 22, 2021

Image by M. Gustafson Gervasi, 2021

Creating an estate plan is one thing, maintaining one is a completely different issue. Recent news stories indicate that fewer than 35% of Americans have an estate plan.  Entering this group deserves a pat on the back, well done!  If you can, muster the focus and energy to go further and to maintain your plan.  An estate plan that is out of date or cannot be found is not much of an estate plan. From that concept grew my new series, Your Compass, where I will explore what it means to manage your estate plan once the ink is dry.

Where is the dang will?  After fifteen years of working with estate planning and probate clients I can tell you a fact.  People lose their wills:

• accidentally shredded;
• misfiled and found years after it was needed;
• dementia takes the memory of where it was kept;
• it was packed with "important stuff" prior to the move, but cannot be found once settled in.

Not finding your will can result in not having a will -- courts may require an original.  So keep it safe!  But what is the best way?  Personally I find safe deposit boxes to be problematic.  Too often the document that says who can get into the box after your death is inside the box....and banks are growing more and more protective in efforts to secure their clients information.

Where does this attorney keep her will you may wonder?  Answer, it's on file with the Dane County Probate Court for Safekeeping.  There is a one-time $10 fee per will.  It is given a case number and filed for safekeeping in a space that has far superior fire and water protection than I could ever provide in my home.  Not a Dane County or Wisconsin resident?  Find out if your county courthouse offers a similar service, but make sure it is a quality service.  Not all court record systems are equal.

As for today, here is the process to file your will for safekeeping with the Dane County Probate Court:

• Your ORIGINAL WILL is filed with the court.  Making a copy of your will for your records is an excellent idea; stamp it COPY and note where the original is filed;
• Put the original will in a #10 business envelop with your name, address, and DOB printed very clearly on the front.  Seal the envelope;
• Create a self-addressed, stamped envelope to yourself.  This allows the court to mail you the receipt for placing your will for safekeeping.  Keep the receipt with your copy of the will and other estate planning documents;
• Call the court to confirm they are open and accepting will drop offs (for several months in 2020 the court was not open for this service) and that make sure the fee remains $10 (check).  The phone number is 608-266-4331.  It is located at 215 South Hamilton St., #1005 (to your left after you pass through security), Madison, 53703.

Thanks for reading!  Sign up for new blog posts alerts to stay on top of your estate plan.  Remember, a blog is not legal advice nor does it take the place of an attorney.  It is meant for thought and discussion.  Please consult a licensed attorney in our area for advice specific to your situation. 

At the Heart of Estate Planning: Where can you do the greatest good if tragedy strikes

 

At the Heart of Estate Planning: Where can you do the greatest good if tragedy strikes

By Melinda Gustafson Gervasi

February 5, 2021

Lawyers ask a lot of questions when counseling clients.  In my estate planning practice a typical sequence of questions when developing an estate plan sounds like this:

Me:  When you die, where do you want your probate assets to go?

Client:   To my spouse.

Me:  And what if your spouse has predeceased you?

Client:  Oh, well to my children equally.

Me:  And if a child had predeceased you, would his/her share go to any child(ren) he or she may have had.

Client.  Umm, well....yes, yes that makes sense.

Me:  Okay, this is the last one, but if the unthinkable happened and you had no surviving children or grandchildren, what would happen then?

Client:  Wow, I never thought of that before.

One of my favorite things about working with clients is when they surprise me and give me tools to use with other clients in the future.  Years ago I walked through the questions above with a client.  The clients was a medical professional with a spouse and four adult children.  The client, unfazed by my questions due to their scientific career and daily work with dying clients said, "well, if I am on a plane that is going down with my spouse and children I want something good to come from that tragedy".  The client then listed 4 nonprofits that would inherit in the unlikely, and unthinkable scenario.  The client felt the 4 organizations captured their families values and would have the most positive impact in the world.

Ever since, when a client gets to the "wow, I never thought about that" question I encourage them to think about where their money would do the greatest good and support their values.  Most need a few days to consider options, but using the structure of "where the money will do the greatest good" makes the thought process a bit more tolerable. 

Thank you for reading.  A blog post is meant to spark thought and discussion, but it is not legal advice.  Please consult with an attorney in your state of residence for legal advice specific to your situation.

Talking to Children About Death -- What I've Been Reading

Talking to Children About Death -- What I've Been Reading 

By Melinda Gustafson Gervasi

January 8, 2021

Grief during the current pandemic is unlike anything most of us have experienced during our lifetimes. Gathering, hugs, sharing a meal are not recommended. Instead Zoom Memorial Services or limited attendance at the grave site puts a twist on our grieving process. In the middle of it all, we are raising children. Inevitably the adults will need to talk about death and dying. This past year I was introduced to two different illustrated children's books that may smooth the path for discussing the path of a loved one with young children.

Badger's Parting Gifts by Susan Varley was introduced to me by the Rev. Kelly Crocker of the First Unitarian Society of Madison last Memorial Day weekend. Discussing death with children is never an easy duty, but it will be with us forever. In Badger's Parting Gifts the readers meet Badger, who is quite old, tired, and ready to go down the "long tunnel". After his passing, the woodland friends he left behind found comfort in the memories each had from an experience gift Badger had gave them during his life: how to tie a tie; how to bake gingerbread cookies; and how to ice skate. Badger's Parting Gifts also has a message for the adult reader -- the shared experiences you leave behind with young people will remain alive after your earthly presence has ended. The book is simple, straightforward, and secular.

More recently, I received an email from a northern Wisconsin librarian who suggested I read Home in the Woods by Eliza Wheeler. It is now part of our home library collection. Home in the Woods gives voice to a young child during the Great Depression who moves to a shack in the north woods of Wisconsin following her father's death. Based on a true story, the book is structured by the four seasons. With each passing season the child grows and heals from new experiences and the earth's renewal. This book may be helpful for a child who has experienced the death of a parent and subsequent changes in their life. I would have liked to see 2 or 3 more statements connecting the natural renewal depicted to the child's grief process. An added bonus to this book is the glimpse it offers into life during the Great Depression.

One of my "to-read" stacks of books.
M. Gustafson Gervasi, 2021