Word of the Month: Personal Representative

Word of the Month: Personal Representative

By Melinda Gustafson Gervasi

February 26, 2024

Personal Representative is the term used in Wisconsin to identify the person authorized to administer the estate of a deceased person.  In other states it is called an Executor. A will or a codicil (an amendment to a will) nominates a person for this role. The actual authority of a Personal Representative is expressed in a document called the Domiciliary Letter, issued by a probate court.   This explanation of the term, as offered in Wisconsin's Personal Representative's Handbook is academic. It helps understand the theory, but does little to help with real world application.  In my humble opinion, when thinking about who to nominate as the Personal Representative in your will, I say to aim for Switzerland.  Who is neutral, precise and efficient.

• Neutral -- who can you nominate that will be fair, reasonable, and not have a so-called dog in the fight as assets are liquidated, bills paid, and monies distributed.  You do have the option to nominate an institution, such as the wealth management division of a bank. For my fellow Credit Union supporters, I have yet to find a Wisconsin Credit Union that offers this service.
• Precise -- doing a probate is akin to going through a federal IRS audit while in bootcamp.  Minutia is the name of the game when gathering assets, paying liabilities and reporting the activity to the court.  In the end the Final Accounting needs to balance to the penny -- meaning all the assets gathered by the Personal Representative as well as those funds that were distributed must balance out to a zero balance. Not everyone has this skill-set.
• Efficient -- when a probate is opened in Wisconsin the court expects to have an inventory of all the estate assets within 6 months of the matter being opened, and for the entire process to be closed within 12 months. This means that assets are gathered, sold, bills and income taxes are paid and funds distributed to the heirs.  While extensions are possible, having the final affairs linger is not enjoyable for the heirs nor does it please the court.  A Personal Representative needs to take action efficiently. 

Chocolate on the shelf at Target -- author stocking up supplies for the office candy dish

Nominating a Personal Representative is an important job.  Take it seriously.  Who is appoint is likely a crucial decision in how well your final affairs will be administered.  

Thank you for reading, please share on social media if you think this might help others.  Remember, a blog is not legal advice.  It is meant to spark thought and reflection.  Please seek the legal counsel of an attorney licensed in your state of residence.  Be well!

Estate Planning Pro Tip: Always Have a Back-up

Estate Planning Pro Tip: Always Have a Back-up

By Melinda Gustafson Gervasi

February 19, 2024

The "back-up" lunch bags

Oftentimes what prompts a client to schedule an appointment with me is either a Stage 4 cancer diagnosis, the death of loved one that caused a chaotic mess they wish to avoid for themselves, international travel from which a fear of our own mortality rises up enough to make someone want a will, or it is simply a New Years Resolution.  Rounding out the Top 5 motivations I've noted to prompt a client to create an estate plan is the birth of a child.  These are some of my favorite meetings because the chances are good the couple will bring their newborn infant to the signing.  With two teenagers in my home, time with a newborn is a precious moment.

As any seasoned parent would, I will offer the new parents a tip or two.  I avoid the rote advice of "sleep while you can" for those meeting with me prior to the birth or "sleep when the baby sleeps" for those with a bundle in their arms.  Instead I offer the idea of "always have a back-up".  Whether it be winter boots, a lunch box, or the industrial sized peanut butter jar, my kids will tell you "mom always has a back-up".  I attribute this to my slightly over-the-top Type A personality and a strong disdain for the last minute scramble.  The word planner is literally in my job description.  At home I plan for the day the child leaves their winter boots at after school camp or the lunch box will be overnighting the school lost-and-found.  It will happen, it is a question of when.  And when it does, I pull out the back-up.  Now my back-ups are likely to be utilitarian, often a handy-me-down from a neighbor or a thrift store find. My frugality is about as strong as my planner behavior.  But, my mornings tend to be less chaotic and more calm with backups.  The back-up may not be perfect, but it gets the job done. This same approach works at the office.

A client will tell me, I want my daughter to be my agent on my healthcare power of attorney.  "Great" I respond, "and if she cannot act, then who do you wish to name?"  On and on I will ask this question for the various roles you appoint people to when creating an estate plan. If you are taking the time to create an estate plan, go the extra mile and make sure you have your backups in place.  You'll likely sleep better at night and avoid a scramble.

Thank you for reading, please share this post on social media if you found it helpful.  Remember that a blog is not legal advice, but a means to spark thought and reflection. Always seek the counsel of an attorney licensed in your home state for advice.  Be well!

Lesson from Grey's Anatomy: Revolutions Don't Schedule Appointments

Lesson from Grey's Anatomy: Revolutions Don't Schedule Appointments

By Melinda Gustafson Gervasi

February 12, 2024

Author's Hoodie -- a Christmas gift, with a touch of cat fur from Law Cat

Confession time, I am one of the fifteen to twenty million loyal viewers of ABC's hit, Grey's Anatomy.  I find the characters' intensity and devotion to a career that must keep learning after the graduation hats are tossed to be similar to my field, the practice of law.  Rarely does an episode cause me to slip into thinking about work; it has proven to be a wonderful way to relax on a night or weekend.  However, recently while watching an episode in Season 17, I found myself nodding when Dr. Richard Webber made a statement to Dr. Jackson Avery -- "Son, revolutions do not make appointments".  The character was commenting on the Black Lives Matter movement that was a part of the show's storyline.

I nodded because I thought to myself "nor does a medical crisis make an appointment".  In my field of estate planning and probate administration I can tell you that the scenarios in which your powers of attorney or will are needed rarely feel planned.  Even for those with a chronic or terminal condition, health events evolve quickly and often erratically.  The lesson I offer from this show is to make an appointment now, during the calm period of life, to create or update your estate plan, which consists of: powers of attorney, a will, and in some cases a form of a trust, as well as documents stating who can make your burial and funeral arrangements. 

While you may be able to complete this task on your own, hiring an attorney to help you cross the finish line may be a smart move.  For many people hiring an attorney is an unpleasant an daunting task.  Rather than leave it up to a Google search, consider these options to help you find someone you trust to help ease the burden:

1. Ask family and friends who live in your area if they had an attorney they worked with.  If they did and it was a positive experience, they'll be happy to share the contact information. And if they had an experience they hated, they will say so as well;
2. Get a referral from your CPA, financial planner or banker.  Likely this professional in your life will have the name of an attorney who operates in a similar fashion, increasing your chances you will enjoy working with the lawyer; and
3. Research the attorney to see if they will be easy to talk with.   See if you can get a feel for how they communicate and what they value.  When it comes to estate planning you will need to speak freely about your family dynamic, health situation and financial position in order to get the most sound advice.

Thank you for reading.  Remember that a blog is not leave advice.  Please consult with an attorney licensed in your home state for advice specific to your situation.  If you have found this helpful, please share it on your preferred social media.  You can also enter your email address above (upper right corner) to receive future posts. Be well!

What to Tell Your Personal Representative: the 4 Ps

What to Tell Your Personal Representative: the 4 Ps

By Melinda Gustafson Gervasi

February 5, 2024

Image by M. Gustafson Geravsi, 2024

Weekly clients express a desire to make sure taking care of their final affairs is easy for the Personal Representative (known as an Executor in other states). Wishes are achieved by taking action.  Here are the 4 "P"s I recommend sharing with your Personal Representative to ease the process when you earthly time comes to an end:

1. Personal Data -- include the basics such as Date of Birth, Social Security Number, dates of marriages, divorces or spouse/partner deaths as well as your religious affiliation, educational achievements and family tree.
2. People -- who should be contacted upon your death?  With many people using cell phones the white pages of yesteryear are gone.  Provide up-to-date cell phones, addresses and email addresses.  Include the obvious close family and friends as well as those people you rely on: childcare provider, pet sitter, employer or employees, housekeeper, lawn care service, accountant, attorney, and financial planner.
3. Pets -- Approximately 66% of American households have a pet.  Leave information relating to the veterinarian, food needs, pet sitter, and who can care for the animal(s) for both the short and long-term care needs.
4. Professional Duties -- for those still in the workforce or with active professional credentials, leave information related to professional organizations you belong to, a list of professional insurances you carry, banking and financial information related to your work duties, and social media accounts used for work purposes (such as LinkedIn).

Whether it is a yellow legal pad, a spreadsheet, or a new ap for your phone, taking the time to organize these key aspects of your life will make the process just a bit easier for the person(s) charged with handling your final affairs.

Thank you for reading.  Remember that a blog is not legal advice.  It is meant to spark thought and reflection.  Please consult with an attorney licensed in your home state for advice specific to your unique needs.  Be well, and please feel free to share this post on social media!