Word of the Month: Issue

 Word of the Month: Issue

By Melinda Gustafson Gervasi

March 25, 2024

Conjure up an image of "lawyer" in your mind and chances are high that it will have a word bubble over the image's head that is filled with lengthy yet empty legal jargon.  While the legal profession is characterized as using far too many complex words, our legal education emphasizes concise writing.  For example, the word "issue" is only five letters long, but conveys a detailed concept.

Within the context of estate planning and probate, the word issue means your "children, grandchildren, great-grandchildren, and lineal descendants of more remote degrees, including those who occupy that relation by reason of adoption (as allowed under Wis. Statutes 854.20) and nonmarital children and their lineal descendants (as allowed under Wis. Statues 852.05).  That is a lot to say with just five little letters.

Wills are written to tell the court how to distribute your estate at your death; the intended reader is a judge or court commissioner, not your family or friends.  This is evident when clients of mine are reviewing their draft documents are are confused when they do not see their children or grandchildren listed.  Instead they will see something along the lines of:

If my spouses has predeceased, then to my issue by right of representation.   Which means, if my spouse died before me, then give an equal share to any of my children, grandchildren, etc.  

Keep this simple word in mind as you dive into the world of estate planning and probate and make sense of documents drafted for you by an attorney or those you are doing on your own.

Please remember -- a blog is not a lawyer, but a platform to spark thought and reflection.  Do not take this as legal advice, rather you should hire an attorney in your home state for advice specific to your situation.  Thank you for reading and be well.

Mother/Daughter (hint, the author is the toddler here). 
Myself and my two children were my mother's only living issue at the time of her death in 2014.

The Philanthropist Inside Us All

The Philanthropist Inside Us All

By Melinda Gustafson Gervasi

March 18, 2024

Earlier this year a news headline caught my attention, Reflecting on your legacy could make you more philanthropic, new research finds. Specifically the statement that "...when people are prompted to consider how their lives will impact future generations, they allocate more of their wealth to collective causes like charities and less to family members." This rung true with me based on nearly twenty years of client meetings; here is a standard discussion with clients creating or updating a will:

Question: "When you die, where do you want your assets to go?"

Answer: "To my spouse or partner." stated quickly, with no need to think.

Question: "And if they predecease you, then where?" I ask with a gentle tone.

Answer: "Equally between my children?" Again, offered without much reflection by those clients with children.

Question: "And if you have no surviving children or grandchildren, then where?  Perhaps this seems extreme, but oftentimes families all board a plane to celebrate a significant birthday or anniversary in Hawaii.  What if you had a great time, but the plane did not make it back?"

And then the pause happens....

Answer: "Wow, I've NEVER thought of that scenario".  

It is not uncommon, after taking a few days to reflect on the question, the client returns with a list of nonprofits they value and respect.  This is not always the case, but it happens a good deal of the time. For those interested in reading more about how you can be philanthropic in your estate plan, you may want to check out a small book  I released in 2013 called Middle Class Philanthropist: How Anyone Can Leave a Legacy.

As a reminder, a blog is not legal advice.  It is meant to spark thought and reflection.  Please seek counsel from an attorney licensed in your home state.  Be well and thank you for reading. 

Book Review: The Last Lecture by Randy Pausch

Book Review: The Last Lecture by Randy Pausch

Melinda Gustafson Gevasi

March 11, 2024

Legacy Letters, also known as Ethical Wills, have grown in appeal in recent years.  Not a legally binding document, a Legacy Letter is just that, a letter you write with the intent it be read at the end of your life aimed at focus on your values, insights and life lessons.  Generally they are a few pages long, however, my recent re-reading of Randy Pauch's The Last Lecture reminded me that they can be more in depth.

A 2008 NY Times Bestseller, the book is an expansion on the last lecture Prof. Randy Pausch gave on September 18, 2007 at Carnegie Mellon University.  At the time he knew he was losing his battle with pancreatic cancer, and only had months to live. The father of three very young children, the lecture and subsequent book allowed him to leave a legacy for his children.  As described on the book cover, the book is not about dying, but rather a lesson on overcoming obstacles and going after your dreams. 

Just over 200 pages in length, this book is a wonderful read and may spark inspiration in you to leave a letter or other type of creative work for your loved ones, especially those that may be too young to remember you well. 

Thank you for reading.  If you have a book recommendation related to my area of focus, estate planning and probate, please leave a comment.  Be well!

 

Rain Man: A Lesson in Estate Planning

Rain Man: A Lesson in Estate Planning

By Melinda Gustafson Gervasi

March 4, 2024

It's March and the annual Academy Awards show is just around the corner.  Loving all types of storytelling, I make it a personal goal to watch as many of the nominated films as I can each year.  This year in addition to the nominated films, I revisited the movie Rain Man, which took home eight Oscars at the 1989 awards show, including Best Picture.  The film explores a week in the life of Charlie Babbit (played by Tom Cruise) who has just learned that his estranged father has died.  Charlie returns home to Ohio for the funeral, and to hear what his father's will states.  He is both expectant and annoyed to learn that his father, a wealthy man, has left him a prized car and rose bushes.  The rest of his $3 million estate is directed to a trust with an unnamed beneficiary.  Ever the son with a sense of entitlement and a growing personal finance troubles, Charlie sweet talks an employee at the trust office to learn the location of the mysterious beneficiary.  He quickly learns that he has a much older brother who is autistic, residing in a care facility.  Consistent with his spoiled ways, Charlie whisks his newfound brother, Raymond (played by Dustin Hoffman) away on a road trip to his home in California.  Charlie convinces himself that he can hold his brother as leverage and convince the trustee to "split" the estate between the two brothers.  A week on the road together allows Charlie to grow and mature in ways he never did before, leaving the viewer with a very "Hollywood" ending to a great film.  

When I turned off my TV and let my attorney brain review the message and theme of the film, I found myself thinking about the character never shown on the screen -- Sanford Babbit.  Writing his will, the elder Babbit sensed that his youngest son was not mature and still needed to grow up.  He also likely new his son had an overgrown sense of entitlement.  At age 16 Charlie took his father's prized car for a joy ride, that not only landed him in jail but was the final straw in their relationship.  Once he was out of jail he left home, never to speak to his dad again.  Yet when he wrote his will he left his son two gifts that had little value, and instead directed this large estate into a trust.  As a parent I think it is easy to anticipate Charlie would go looking for the money, and that trouble would quickly follow.

So much of estate planning is seen from the vantage point of the person writing the will, with little to no consideration given to the people left here on Earth navigating grief, expenses, and the distribution of assets. A subtle message from this film may be to give a plenty of thought to what the terms of your estate plan will do to the dynamics of your family, especially if you are leaving children behind.  

Know of another great movie that touches on estate planning and or probate?  Send me a comment and I'll check it out!  Also, remember that a blog is not legal advice.  It is meant to spark thought and discussion only.  Please consult an attorney in your home state for advice specific to your situation.  Thanks for reading, and be well!