Illness, Death, and Taxes for the Middle Class

What Is Intestacy?

2012-02-15T05:00:00.000-06:00

Intestacy is one of those estate planning words that people know they have heard before, but cannot really give a definition when asked. Simply put, intestacy means you have died without a will. As a result, state statute will control the disposition of your probate property (property that does not have a beneficiary form). The rules for distribution in Wisconsin are visually displayed in this chart. Some people are fine with the State's assumptions, some are fine up to a certain point, and others disagree completely. Take control of the situation by doing a will, avoid the intestate estate.

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What Is Tangible Personal Property

2012-02-14T05:00:00.000-06:00

Tangible Personal Property, or simply TPP, consists of the personal items in a persons estate. Examples include:

jewelry;
art work;
collectibles;
the family Bible;
grandpa's hunting rifle;
photographs;
furniture; and
the list goes on.

Often times this items are worth more in emotional value than financial value. However, they can cause huge disputes during the time following a loved one's death. Mom's engagement ring cannot be divided into three pieces. A new owner must be selected. By doing a will you can take control over the situation.

Usually an attorney will insert a paragraph into a will that says "I may leave another document, signed and dated by me, that lists my TPP and whom it should to go upon my death". If created, the personal representative should distribute accordingly. It is the legally enforceable alternative to putting a post-it note on items saying "to Sue upon my death."

The nice thing about these types of forms is that they can be updated without the assistance of an attorney. That saves money and makes it more likely that they'll be kept up to-date. So, if a person inherits an item, makes a purchase while traveling, or downsizes and gives things away....the list can be current without paying legal fees.

Thanks for reading. As a reminder, February is being devoted to posts defining basic estate planning and probate concepts.

What Is A Transfer on Death Deed?

2012-02-13T05:00:00.000-06:00

Regular readers of my blog know that I am devoting the entire month of February to translating legalese into English. Today's phrase is "transfer on death deed". It is a deed for real property (home, cottage, vacant lot) that states who should receive the property upon the owner's death. In plain English that means when the owner dies, it gets transferred to the person(s) listed, and that transfer occurs outside of probate. It will cost less and occur much faster.

What is the drawback of a TOD Deed? First, Transfer on Death Deeds are not available in all 50 states. They came to Wisconsin in 2006, and exist in about a dozen other states (see a previous post for a listing). TOD Deeds do not allow for contingent planning. Essentially you cannot say I leave this to Sue, and if Sue predecease me then to Tim. Finally, TOD Deeds require you to list people. You cannot list a class of people, such as "my children".

TOD Deeds offer a nice alternative to the traditional living revocable trust, which historically was used to transfer homes outside of probate. However, TOD Deeds are far less expensive and cumbersome to use.

If this sounds appealing, contact a lawyer in your area to see if the option is a good one for you. Remember, a blog is just a blog....it is not legal advice.

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What is a TOD?

2012-02-12T05:00:00.000-06:00

TOD, yet another three letter acronym that bounces around in estate planning and probate discussion. It stands for Transfer on Death. Essentially it is a beneficiary form put on brokerage accounts. This is slightly different than POD (pay on death) labels that can be put on accounts at banks and or credit unions. However, the accomplish the same goal - transferring the asset outside of probate.

In the past few years I have heard that brokerage houses are now charging fees of $75 to $250 to create, change, or execute TODs on accounts. This was NOT the case more than five years ago. It seems that the new fees cropped up following the financial meltdown. Ever the frugal person, I'd tell my brokerage house to either wave the fee or I will be searching for an institution that isn't nickle and diming me.

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What Is A POD?

2012-02-11T05:00:00.000-06:00

The law is cluttered with three letter acronyms. And one of the most common is POD. It stands for Pay On Death, and is commonly associated with accounts held at a bank or credit union. By placing a POD on your accounts you are creating a label that tells the institution what to do with those assets when you die. You are NOT transferring an ownership interest during your lifetime. Rather, you are saying "upon my death, please give this asset to X".

Why do a POD? The most common reason is to avoid probate. This allows the transfer to occur very quickly (usually a matter of weeks if not days) and avoids fees associated with probate.

I do see clients who go overboard on PODS, creating so many that there are no assets in the estate when they die. Yes, that means they avoid probate. But they've also created a situation where the question is raised - who is going to pay the final medical bill, credit card statements, etc. Sometimes it is a good idea of have a small amount of money left in the probate estate to take care of those final expenses.

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What is the Estate Tax?

2012-02-10T05:00:00.000-06:00

If there is on tax out there that bothers far more people than it ever touches, it is the estate tax. What is it and when should you be concerned?

The estate tax is a tax that is owed, by the estate of a deceased person, to either the federal and or state government if the person had a net worth over a certain amount. That amount is referred to as the exemption level; if the net worth is below the amount, the estate is exempt.

The current federal exemption level is $5 million for an individual. However, unless Congress takes action before the end of the year, it will revert back to $1 million per individual on January 1, 2013. Net worth means assets, minus liabilities. Probate and non-probate assets are included in the review. As are many life insurance policies -- something that surprises quite a few clients.

Given the exemption levels, most Americans will live and die without the tax ever effecting them directly. Yet, many people experience stress and worry. Some states do have their own version of an estate tax. At the time of this blog post Wisconsin, where I live, does not have an estate tax.

If your assets, minus liabilities, including life insurance are bumping the $1 million mark AND Congress does not take action to raise the exemption, you may want to learn more about ways to minimize and tax liability. An attorney, CPA, or fee-based financial professional are all excellent resources.

What is Residue in Estate Planning

2012-02-09T05:00:00.000-06:00

Residue -- the word can take on various meanings depending on the subject area it is being used in. In the world of estate planning it means the probate property that has not already been specifically given away. For example, a person may draft a will that says "I leave my house to my church. And I leave the residue of my estate to my children, in equal shares". Residue is a quick way of saying all of my other, unspecified, probate property should go to my children.

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And there you have it, residue defined in the context of estate planning. Absent of any mention of soap.

What is Probate

2012-02-08T05:00:00.000-06:00

Probate -- a word that strikes fear in nearly everyone. In reality, depending on where you live, probate may not be nearly as bad as you might imagine. Your fears are often used to sell you cumbersome, overpriced trusts so that you will avoid probate. Before turning over thousands of dollars, understand the basics so that you can make an informed decision.

Probate is the legal process by which assets of the decedent are transferred to new owners. If the decedent had a will, the will tells the court what to do with the probate property. If there was no will, then state statue controls the distribution of assets. In Wisconsin those rules are set out in Chapter 852 of the Wisconsin Statutes.

Also, it is important to note that the probate process only casts a net over probate property. That is defined as property that does not have a label on it stating where it should go upon the owner's death. Common examples include tangible personal property (jewelry, clothes, furnishings, etc.), vehicles, bank accounts, and homes. Excluded from probate are assets that have a beneficiary form, such as those on life insurance and or retirement accounts.

At the time of a person's death, the personal representative nominated in a will is supposed to file the will with the court. The court will issue a letter (domiciliary letter) stating that the personal representative is authorized to handle matters related to the decedent's estate. That means they can close accounts, shut off cell phones, talk with accountants, sell property, etc. During the initial phase of probate the personal representative is required to give notice to all known and unknown creditors of the decedent. In Wisconsin those creditors have 90 days to file a claim against the estate. Using an "estate of checking" account opened by the PR, final bills are paid, proceeds from assets being sold are deposited, and if there is a positive balance at the end, the remainder is given out according to the terms of the will or if no will, by statute.

Fees associated with probate vary greatly from state to state. In Wisconsin the current fee is 0.2 percent. That means $2 for every $1,000 (liquid and ill-liquid) are owed to the court at the time the inventory is filed. However, in some states, the fee can go as high as 10% or 15% of the probate value.

Probate also takes time, or at least more time that non-probate transfers. The court is involved, creditors have to be notified. Selling real estate and reaching resolution on final medical bills commonly slow down the process so that 18 months from start to finish is considered timely.

If you are considering taking measures to avoid probate in your state, I urge you to slow down, gather information, and make an informed decision. What is a true cost of probate (the fee plus a few thousand for attorney fees) and compare it to the cost of a trust -- often the vehicle sold with the promise it will avoid the hassles of probate. Beware, trusts avoid probate, but often create an entirely new set of expensive problems.

Small Estates and Transfer by Affidavits

2012-02-07T05:00:00.000-06:00

Last week I met with a women who was handling the affairs of her mother who had died just over a year ago. I could tell that she dreaded the p-word, probate. The smile that enveloped her face when I told her that no probate was needed was the perfect way to end my day. Sometimes I actually get to deliver good news!

In Wisconsin, if a person dies with a probate estate of less than $50,000, probate can be avoided. Instead an obscure form known as the Transfer by Affidavit can be used. The forms tells a financial institution to close out the account and send the money to the person filing the affidavit.

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The idea behind this process is that it does not make economical sense for a probate to be open when the probate assets are small. Hence, in some states it is called a Small Estate Process. The key is to know whether the probate estate is less than $50,000. To answer this you need an inventory of probate property and their value upon the date of death.

Probate property is anything that does not have a label on it stating where it should go upon the owner's death. If there is a label, then it is considered non-probate property, and avoids the probate process. In theory, person could have several hundred thousand dollars, even millions, and still file a "small estate" transfer by affidavit if the probate estate was less than $50,000 (that is the current threshold, it was increased from $20,000 several years ago).

Please keep in mind that laws regarding probate and estate planning vary from state to state, and that a blog is not legal advice. Please consult an attorney in your state about your specific situation. But, before loosing sleep over the dreaded p-word, first rule out that a small estate transfer won't work.

What Is A Guardian?

2012-02-06T05:00:00.000-06:00

The word guardian in the context of estate planning can mean one of two things. The most common is the person you nominate in your will to take over the day-to-day activities of raising your child(ren) if both parents die. The guardian functions as the parent until the child reaches age 18. Deciding on who should be the guardian seems to be the main reason parents of young children do NOT complete an estate plan because they cannot reach a decision. Do not let this choice throw you off. The last thing a child needs who has lost both parents it ambiguity or a fight over who will step in to raise them. If you need guidance on how to reach a decision, check out a previous blog entry I wrote.

Guardian can also refer to a court appointed person who is in charge of an individual's health and or financial matters. This person would be appointed by a judge as part of a guardianship proceeding, which occurs when there is no power of attorney for health care and or finance for the individual. To be concise, guardianship is avoided when a person creates a power of attorney stating who should handle health and or financial matters if they are too sick to do so.

Thanks for reading, a remember, a blog is not a substitute for legal advice. It is always wise to consult an attorney in your state about your situation.

What Is A Codicil?

2012-02-05T05:00:00.000-06:00

Codicil is a fancy word for an amendment to your will. It is useful when you have minor edits to make to an existing will. Examples would include changing the name of your personal representative or guardian for your child or hanging the dollar amount of a gift to charity. If you have broader, more structural changes, a codicil is probably not a good idea. This would mean if you need to build in a trust for minor children or to plan for federal estate taxes.

If changes to your will are needed, consult with an attorney in your state. It is not recommended to simply cross items out and write them in. Here in Wisconsin a codicil needs to be executed, or signed, in the same manner as a will -- signed and dated in the presence of two witnesses who also sign.

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Remember - a blog is not legal advice, it is just a blog post. Thanks for reading.

What Is a Power of Attorney for Health Care?

2012-02-04T05:00:00.000-06:00

Welcome to a special weekend post on Illness, Death and Taxes for the Middle Class! I am devoting the month of February to defining basic terms associated with estate planning. All 28 days will feature a post with a definition and discussion.

Today I am looking at a Power of Attorney for Health Care. Depending on what state you live in the name will be different. Some are advance directives, some are proxies, etc. Here in Wisconsin a Power of Attorney for Health care is a document that allows you to appoint someone to make health care decisions if you are not able to. Without one, loved ones will need to hire an attorney to go to court and get guardianship. The court will appoint an attorney to represent the interests of the sick individual. Two attorneys, court hearings, it take time and the costs add up. It can all be avoided by executing a power of attorney for health care.

Executing the document can be quite painless. Wisconsin has forms for free on-line (they offer bare bones protection in my opinion, but are better than nothing). What I think is far more important is deciding who should be your agent.

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Sadly, I have had the unfortunate pleasure of acting as power of attorney for my father when we has dying as well as for my mother as she has battled heart disease and other serious conditions. From that experience, I offer the following insight:

do not pick someone based on order of birth or your knee jerk reaction. Give it some thought -- who is right for the job? It does not need to be a relative;
who is comfortable speaking with doctors and medical personnel?
who can handle seeing you in a very compromised state?
who has the time to be with you? My dad spent an entire month in the hospital as he was dying. It was just down the road from me, but I had a 14 month old son and a legal practice. Being there was hard, but doable.

Once you've decided who to nominate, it is a good idea to ask the person if they agree to serve in the role. Share with them your thoughts on care, etc. They need to know what you think so that they can effectively speak for you if you cannot.

Once the document is signed, give copies to your agent and back-up(s), doctor, specialist, and hospital. The papers do you no good if that can't be found if a sudden illness or accident occurs.

What Does "Issue" Mean in the Context of Estate Planning

2012-02-03T05:00:00.000-06:00

The word "issue" plays a key role in estate planning. However, a Google search will turn up the non-legal definitions: - the act of sending out or putting forth; -something that is printed and distributed; and so on. That is of little use to those attempting to create a will.

I often begin seminars with the statement that one of my primary functions as an estate planning attorney is to translate legalese into English, and the I point out that word "issue". In estate planning parlance it means a person's offspring -- their children, grandchildren, and down the line.

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An example of "issue" in an estate plan would be "the remainder of my estate to my spouse, if my spouse has predeceased, then equally to my issue, by right of representation." This is legalese for "give my property to my spouse, and if they died before me, then to my kids in equal shares." A side note, the phrase "right of representation" is also known as per stirpes. This indicates that if a child had predeceased, then his or her share would go to his or her children instead of his or her surviving siblings.

It can get complicated. Flow charts are a great way to capture some of these concepts.

Remember, a blog is not legal advice. Please consult with an attorney in your state for advice specific to your situation.

Thanks for reading! I'll be back tomorrow with another definition.

What Is A Personal Reprsentative

2012-02-02T05:00:00.000-06:00

Personal Representative is a rather clunky phrase, but it is the legal name of what is more commonly referred to as the "executor" of someones will. That said, what does he or she do? The role of the personal representative is to usher an estate through probate. In more common language, he or she files a person's will with the probate court. That begins a process during which:

creditors are notified of the decedent's death;
the court issues a letter empowering the personal representative (called the domiciliary letter here in Wisconsin) to handle all matters related to the estate (close accounts, sell property, etc.);
liabilities are paid (funeral, medical, cell phone, credit card, taxes, etc.);
remaining probate assets are distributed according to the terms of the will if there is one or by according to statutory guidelines if there was no will; and
the estate is closed.

Often times the PR will hire an attorney to assist with this process, which can take from 12 months to over 2 years. The attorney's fees are a cost of the estate, meaning the estate plays the attorney's bills not the PR.

When drafting a will it is very important to give thought to who would be a good PR. I recommend someone that is good with finances, legal matters, is organized, will not be emotionally crippled by your death, and if possible, local.

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The only legal way to nominate a PR is to draft a will, otherwise you are leaving it up to chance as to who will step forward and ask the court to appoint him or her. Drafting a will is never easy, but keep in mind it allows you to take control in a matter that you probably know best compared to the court.

Blogger note: I am devoting the month of February to definitions of terms common to estate planning. Enjoy.

What Is A Will

2012-02-01T05:00:00.000-06:00

It's February and I declare that Definition Month here on Illness, Death and Taxes for the Middle Class. For the next 28 days I will be devoting my posts to the definition of terms common to estate planning. Enjoy.

All too often I hear the question "Probate? Why do I need probate when there is a will?" And with that, my role as an educator begins.

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A will is a document that tells the probate court what you want to happen if you die. A will does NOT avoid probate. A basic will allows you to:

nominate a personal representative (commonly colloquially called the "executor);
nominate a guardian for minor children; and
distribute your probate property.

Wills need not be elaborate, and requirements for its validity depend on the state in which you live. Here in Wisconsin it should be signed and dated by the testator in the presence on two witnesses. If you have the resources, it is highly advisable to work with an attorney to draft a will. Blended families, inheritances, marital property, predeceased relatives can quickly complicate matters.

Safekeeping of a will is also highly important. Gone are the days when lawyers will keep it in their vault, or at least those days should be gone. Doing so gives that lawyer an unfair advantage if changes are needed or a probate commenced. When I work with clients I had them the originals and advise them to keep it in a fire proof box at home. I do NOT recommend it be kept in a safe deposit box. Upon death, the document that allows someone to get into the box is IN the box. And then you have a mess. If you are not comfortable keeping it at home, check with your local courthouse. Here in Wisconsin you can put your will on file for a nominal fee. Just be certain to leave a record of where you put it. Whether stored at home or the courthouse, it does no good if no one can find it.

Perspective and George Straight - Here for a Good Time

2012-01-31T05:00:00.000-06:00

I'm not sure when it happened, but all of a sudden I have a fondness for country music. Maybe because my 30s are drawing to an end and 40 is coming on fast. Maybe because I'm a parent and see the world in an entirely different light. Maybe because I counsel clients on matters of illness, death and taxes. And maybe it is a combination of all three. Regardless, country music strikes a chord with me these days.

Recently, while driving to the office Here for a Good Time by George Straight came on the radio. It was the first time I'd heard the song, and I had just learned about the death of a much liked law professor. She was only 53 and left behind a teenage son. That news rattled me. But Straight's lyrics helped me put life in perspective. And it put a smile on my face. The following verse jumped out at me "folks are always dreaming about what they'd like to do but I like to do just what I like".

Wills, powers of attorney, trusts, probate -- they are all important and essential, but they are also heavy topics. If they are weighing on you, take a listen, it might help put a smile on your face. You're still here, have a good time.

The Art and Importance of Prognosis

2012-01-30T05:00:00.000-06:00

Prognosis -- it is an art that, according to this NY Times article, has been neglected by the medical profession. Prognosis the the doctor's ability to predict a patients survival. It is a key factor in deciding when testing, screening, and other measures should be ceased. The article states that colonoscopies are not recommended for patients over 85. However, there are many 90 year olds who are in better health can 65 year olds. Reading that sentence I immediately thought of my grandparents and my mother. At 90 my grandparents are in far better health than my mother, who is kept alive thanks to the miracle of pacemakers. The article states that the medical professional could improve on doctor's ability to research, determine and communicate a patient's prognosis. It is an interesting thought. Most people seem to rarely question a doctor's word, let alone think he or she doesn't have a good idea on survival. Hopefully improvements will come soon.

Forensic Anthropology Center, A.K.A. The Body Farm

2012-01-27T05:00:00.000-06:00

Looking for a green burial option, but want something different than a green burial? Have you considered donating your body to a forensic anthropology center where it would be used to assists scientists in building knowledge about how bodies decompose. Why would this be important? Those scientists take the information and use it to assist crime scene investigations.

One center is located in Tennessee, The University of Tennessee's Forensic Anthropology Center, or Body Farm as it is called, conducts research to assist law enforcement investigations. If you find this appealing, then you are not alone. Apparently there is a two year wait list at UTFAC.

I'm not sure about you, but I find this to be a great option to the costly and environmental harsh traditional burials. The cost appears to be zero, and you are giving one last gift to science and crime solving. That sounds like a win-win to me.

If you'd like to learn more, click here for a link to NPR, which covered the topic.

Elder Care in Modern Times

2012-01-26T05:00:00.000-06:00

Nursing homes, assisted living facilities, elder day care, in-home attendants -- commonly these words have a negative connotation with them. However, as author Hendrick Hartog points out, they are a lot better than historical options. Caring for elder loved ones primarily fell on children in historical times. And if that sounds quaint, you may be looking through rose colored glasses. Recently the New York Times ran an article by Hartog, Bargaining for a Child's Love, which sheds a new light on how the elderly were cared for in times past.

Take a look, and then share your thoughts. Skilled nursing care, is it a good thing, a bad thing, or a bit of both?

Seminars on Wills, Trusts, and Probate - Madison, Wisconsin

2012-01-25T05:00:00.000-06:00

As January approaches its end, I am gearing up for another intense round of seminars. Some are 2 hours in length others are 45 minutes as apart of a larger retirement planning workshop. Some are open to the public and free, others require a small registration fee. Either way, they are a great way to learn more about the world of wills, trusts, and probate.

I always start my seminars with "estate planning is three things: planning for illness, death, and taxes. Things none of us are going to escape". Come, learn, and reduce any anxiety you may have about this critical subject. Whether you are 18 or 88, you'll learn something valuable!

My seminar schedule is posted here.

If an organization you belong to is need of a speaker on issues related to estate planning, please contact me office.

Image taken by Attorney Melinda Gustafson Geravsi - Holga Camera

What Happens to Personal Property When Someone Dies?

2012-01-24T05:00:00.000-06:00

It's the little things that matter. And its the little things that tend to start family feuds when a loved one has died. I have seen children of a decedent fight over hunting rifles that do not work, a pickle dish that mom had bought at a garage sale, and furniture that would not fetch $20 at a rummage sale.

Estate planning sounds like a fancy and expensive process, but in reality it is simply taking charge of the situation by telling the probate court what to do with your stuff when you die. Sure there are the big items like a home, car, and savings account. But it never fails that the little items create the biggest waves.

How does one handle dictating what happens to their stuff, or in legal mumbo jumbo, their tangible personal property? If you live in Wisconsin, state statute 853.32 allows you to mention in your will that you have created another document that lists your property and who should receive it. This is great because you don't have to clutter up your will with references to wedding rings, china sets, and hunting rifles.

Take charge. If something little matters to your loved ones, then take control and state what should happen to it upon your death. Remember, a blog is not a substitute for an attorney. This is not legal advice, but rather the musings of an estate planning attorney in Madison, Wisconsin. It is best that you consult with an attorney, in your state, about your specific situation.

Changes Coming for Wisconsin's 529 Plan

2012-01-23T05:00:00.000-06:00

Reading the local paper last week I came across a small article that may have significant ramifications on participants in Wisconsin's 529 Plan, called EdVest. Apparently the current administrator, Wells Fargo, no longer wants to service the account. That means the State will be seeing a new company to run the 260,000 accounts, totaling $2.6 billion.

Why is a change of administrator important? The fee that is charged can be quite steep. My husband and I selected the Vanguard Index funds that are offered under the current investment options. The fees were quite low, which means more of our money will go towards our children's education, and less into the profits of the firm administering the program.

According to the article, Wells Fargo's current contract ends October 31, 2012. I'll be watching and monitoring what this might mean for fund selection and possible fee increases.

Very Charitable Celebrities

2012-01-20T05:00:00.000-06:00

Forbes has an article listing the 30 most generous celebrities to non-profits in 2011. I had never heard of either #1 or #2, but I don't have much time for entertainment these days. It is amazing to see how much money some of these celebrities have given. From athletes to writers to actors, the list is diverse.

#1 - Jami Gertz, Actress
#2 - Herb Albert, Muscian
#3 - Mel Gibson, Actor
#4 - George Lucas, Director, Producer, Writer
#5 - Nora Roberts, Writer

Click here for a complete list and to see the amounts donate. Number one hits the seven figure mark!

I love the fact that these celebrities are putting the spot light on non-profits. Don't let the six and seven figure donations stop you from making a difference. In the life of a non-profit, every penny makes a difference.

Remember, it is best to consult with your attorney and our CPA for tax information on charitable donations -- not a blog post! Happy giving everyone.

Finding Care Providers on the Internet

2012-01-19T05:00:00.000-06:00

From grandparents to parents to yourself, if finding in-home care assistance is a need, you may want to investigate the web site care.com. I recently used the site in our search for a new nanny, but have made a mental note to go back to it should my mother need help to prolong her ability to live independently. The site allows you to post a job, review applicants, and conduct a back-ground search. The last factor was very compelling for me. There are lots of ways to find candidates, but doing a background search can be difficult. On this site it can be done with the click of a mouse.

The cost of in-home care can be staggering. Since assisted living is not covered by Medicare or Medical Assistance, in-home care needs to be paid for by the recipient unless they have long-term care insurance. It seems that internet sites are an ideal way to locate care providers and keep the administrative costs low. Also, it is especially nice when loved ones live far apart. Finally, you can conduct searches from the comfort of your home or office at any time of day.

The following are examples of some of the services you can secure from care.com:

pet sitting / walking;
housekeeping;
senior counseling;
agencies who provide senior care; and
individuals who provide senior care.

What do others think of this site, or do you have another one you prefer? I am not endorsing this site, just sharing my one positive experience with it. I'd love to hear from other people who have stories to share. Information is powerful, please let us know what you think.

Am I Responsible for My Parents' Debts?

2012-01-18T05:00:00.000-06:00

As an estate planning attorney I am routinely asked "will I be responsible for my parents' debts when they die?". A blog is not a vehicle for distributing legal advice, but from an education perspective I can share with you what I share with my clients.

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In Wisconsin adult children are not responsible for their parents' debts. However, if that child co-signs on a loan, credit card application, or assisted living contract, liability for payments may be established. What to take from this is, if you live in Wisconsin (sorry for those out-of-state) you will not be responsible for your parents' debts unless you agree to pay for them. That is why the old saying "read before you sign" is so vitally important.

If a parent dies and leaves behind bills that exceed the assets in probate, what occurs is an insolvent estate. Using statutory guidelines, repayment will be made to certain creditors first. For example, the cost of administration and monies owed to government entities are paid before consumer debt. If there is not enough money to go around, the debts are either reduced or not paid at all.

Again, this blog does not dispense legal advice. Please seek counsel from an attorney for legal advice specific to your situation. Thanks for reading.

Tax Refunds in the News

2012-01-17T05:00:00.000-06:00

Last week I came across this little article on the Channel3000 web site. The headline reports that the amount of a federal income tax refund was down in 2011. The word "slips" gives this fact a negative connotation. Why is this a bad thing?

When I hear that the amount of income tax refunds is down, I interpret that as more people paid the proper amount of taxes through the year and did not send extra money to the IRS. When you overpay during the year the IRS has your money, interest free. Sure, interest rates are not what they used to be. But if you had that money in hand you could apply it towards debt you may have, and there is certainly an interest rate associated there.

Now maybe the amount is down because people are earning less, but this fact is not stated or proven in the article. Without knowing the reason, I'll just remind you that the frugal approach would be to get to the end of the year and not owe the IRS and not have them owe you.

If you are curious about the status of your refund check you can go to www.irs.gov and look under the "where's my refund".

Martin Luther King, Jr. & Things That Matter

2012-01-16T05:00:00.000-06:00

Today our nation pauses to honor a great hero, Martin Luther King, Jr. Today's post contains one of his many inspiring quotes:

"Our lives begin to end the day we become silent about things that matter."

In consultation with clients have have to ask "and who would your property go to if that person dies". After asking this once or twice a puzzled look takes over the client's face. At that time I ask "who or what would benefit the most if everyone were gone, where could the money promote your legacy?"

A will can be a mundane legal instrument or it can be a vehicle for change. Including a charitable organization in your will is a great way to promote things that matter once you are silenced.

As always, do not use a blog post for legal advice. Please consult with an attorney licensed in your home state.

Dr. Mike Evans - 23 1/2 Hours

2012-01-13T05:00:00.000-06:00

This past week I was introduced to Dr. Mike Evan's YouTube video lecture, 23 1/2 Hours, through a post on Facebook. What a great way to kick off the new year: it is an entertaining, concise, and motivating 9 minute clip about one very simple thing people can do to improve his or her quality of life. Walk for 30 minutes a day. It does not need to be 30 minutes all at once. Ten minutes here another 10 there, etc. From depression to heart disease to cancer to bone density, walking offers improvements in all areas. The most fascinating fact was that people who walked were better off than those who received a stent following a cardiac episode.

I have always been inclined to walk. It is one of my favorite forms of exercise. It requires little to no equipment, can be done at home or while vacationing. You can go solo or with family and friends. During my second pregnancy my blood sugars were running high and were controlled by limiting carbs in my diet and a 30 minute walk every evening. Walking has been and will continue to be a constant in my daily life.

I spend my professional life working with people helping them take control of issues related to illness, death and taxes. Some days are more stressful than others. Walking - what a great way to combat that stress. How about you -- how do you keep yourself healthy so those estate planning documents can remain in a safe place and not be used?

Book Review: Final Gifts

2012-01-12T05:00:00.000-06:00

I began the new year by reading the book Final Gifts: Understanding the special awareness, needs, and communications of the dying by Maggie Callanan and Patricia Kelley. When my husband saw the cover of the book he suggested that I may want to consider a career change -- what you do is so depressing he said. Yes, an element of my work is sad, but the majority of my work feels great because I help people take control and put life in order. However, I would agree that reviewing books such as Final Gifts should be limited.

While I enjoyed the book, it was extremely depressing. If you were to pick it up I would recommend reading the the first chapter, skimming chapters two through fifteen, and reading the final chapter, sixteen, titled Nearing Death Awareness: Practical Uses. The bulk of the book contains moving stories of people approaching the end of life. While moving, I did not get a great deal of value out of the stories. I did however value the final chapter. Especially the suggestion that if you do not know what to say, say nothing at all an instead offer a hug or hold a hand. Displays of affection may be far better than words.

One other useful nugget I took from the book was that if you are interacting with a dying person or his or her caregivers and want to lend a hand, be specific. Don't say "if you need something call". Instead say "I'm picking up Chinese for take-out tonight, what would you like me to get for you?". People facing the end of life, and their caregivers, do not need the extra assignment of trying to find a useful outlet for your kindness. Be specific, and it is a lot easier for them to say yes.

New Years Resolution - Do An Estate Plan

2012-01-11T05:00:00.000-06:00

We are well into January, and as usual my phone and email have been busier than normal. There is something about this time of year that motivates people to finally complete an estate plan. Maybe it is articles like this one, or the fact that the holidays are behind us and the long days of winter do not offer enough distraction.

I am often surprised at how many people call and say, I'd like a will....I don't need an estate plan. Over the years I've come to learn that people associate the phrase "estate plan" with something akin to the Kennedys or Rockefellers. They could not be farther from the truth. Anyone who is 18 or older should have an estate plan. The documents may not be the same as a Kennedy or Rockefeller, but they still need them. Estate planning is planning for illness, taxes, and death. Things none of us will avoid.

When thinking about estate planning, keep this in mind. It is about taking control and putting your wishes in a format that others will follow. Happy new year!

Baby Boomers and Inheritances

2012-01-10T05:00:00.000-06:00

As we look to the years ahead, various reports show that anywhere between $10 billion and $400 billion will change hands from one generation, the next, via inheritance. However, Baby Boomers should not sit back and wait for a call from an attorney. According to recent reports, Boomers are less likely than pre-Boomers to receive an inheritance. An AARP study from 2003 showed that only 19% of Boomer households received an inheritance, and the average amount was $49,000. I could not agree more with the final paragraph of this article....don't count on an inheritance, instead build your own nest egg. Moreover, an estate planning attorney, I'd have to remind readers that people are not obligated to leave children an inheritance. It is their choice, and they may opt to give their remaining assets to a charity or other cause. I see this more often than some might think.

Happy 70th Birthday to Stephen Hawking

2012-01-09T05:00:00.000-06:00

This past Sunday, famed scientist Stephen Hawking turned 70. Reaching eight decades is impressive, but even more so is that he has lived 50 years longer than doctor's predicted when he was diagnosed with ALS. Last week the Washington Post ran a lovely story wishing him well on his birthday as well as offering readers six life lessons we should all embrace. My personal favorite is "knowledge is best put to use when shared". Click here to read the entire article.

Speculation About Federal Estate Tax

2012-01-06T05:00:00.000-06:00

Under present law, the federal estate tax exemption of $5 million per individual will end December 31st of 2012. It would then revert to the $1 million mark. Many think this change is unlikely, however, what would take its place? A higher exemption? Repeal of the tax all together and replace it with something else? Only time will tell, however, reports from Indiana indicate some interest with replacing the federal estate tax with a sales tax assessed on all on-line purchases.

Photo credit: www.sxc.hu - free image

As the year moves forward we will likely see many more ideas and proposals made. I'm curious to see what happens in the end, are you?

Wisconsin's Green Cemetery

2012-01-05T05:00:00.000-06:00

Early last summer Wisconsin welcomed what I believe is its first green cemetery. Located in Verona, Wisconsin, it is known as The Natural Path Sanctuary. It offers an alternative to traditional cemeteries. Cremains can be scattered, bodies returned to the earth in nothing more than a cotton shroud, and families given a quiet and calm meditative spot to celebrate the life of a loved one. I toured the facility prior to it getting approval from the various government entities. I am delighted that it is now open and functioning.

What exactly is a green cemetery? When opting for a green burial one is forgoing a vault, embalming, concrete, and metal. Not only does it tread more lightly on the earth, it is easier on the pocket book as well. The right to a burial at The Natural Path Sanctuary appears to be about $3500. In contrast, an average funeral in 2006 cost $7,300. And I'm certain the price has increased since.

Photo credit - The Capital Times, Madison, WI

Green burials are common outside of the US, and were the method used in 19th Century America. Progress is not always ideal. Green burials, a return to a prior tradition, offer an alternative to the pricey and environmentally harsh practices of current practices.

Documentary Film - The Undertaking

2012-01-04T05:00:00.000-06:00

I heard about this video at a seminar I attended last fall. For those interested in learning more about the funeral industry in America, I suggest you watch the video. It is a behind the scenes look at one operation in a small midwestern town. It ran in 2007 on PBS' Frontline.

Personal Representatives Should Monitor the Mail for 1099-Misc

2012-01-03T05:13:00.000-06:00

If you are a personal representative for an estate, I suggest that you monitor the decedent's mail for any 1099-Misc. forms. Why? These are a great way to locate assets that you may have overlooked or not found when completing the estate inventory.

What is the 1099-Misc.? It is a tax form, generated by the payor, for miscellaneous income paid. It might be for services, rent, interest, or royalties. Regardless of the type of income, it is an excellent way to catch any missed assets.

My father died in 2009 and that following January my mother received a 1099-Misc in the mail. We had not uncovered a small savings account at the bank where an old mortgage had serviced. Thanks to the 1099-Misc. we located some unknown assets.

Monitor the mail as we enter into the tax season.

End of the Year Qoute

2011-12-30T05:00:00.000-06:00

"Life is not measured by the number of breaths we take, but by the moments that take our breath away"

- Maya Angelou

Have a wonderful end to 2011 and start to 2012. I'll be back with more thoughts on illness, death and taxes in the new year.

Death Doula

2011-12-29T05:00:00.000-06:00

Doula -- it is a new age word to some, common to others. I first heard of a doula when I was expecting my first child. I even hired one with hopes that she would serve as a coach to my husband during the birth. Our son had other plans -- he was breach and a c-section was needed. Only one person could be with me in the OR, and that was my husband. Our doula did assist in the few weeks after our son's birth, and was quite helpful.

Up until this week I assumed that a doula was associated with the beginning of life, not the end. Then I saw a Facebook post sharing an article for the LA Times. Death Doula: A midwife for the end of life. As I read the article it did seem natural to have an advocate assist as one's life draws to an end. I see the family strife all the time. A neutral party can be very helpful. From navigating the health care system, to coordinating family visits, to making final arrangements.

However, I would urge people NOT to plan to wait on completing essential estate planning documents until they have a death doula at their side. Why? Unlike birth, not all deaths are easily forecast. If you are in your 80s or 90s or have a terminal illness, a death doula could assist in making sure you complete necessary paperwork and help with the end of life process. Sadly, there is not always time to contact a death doula. Heart attacks, stroke, car accidents, and countless other ways can end a life, any life, no matter the age, instantly.

The death doula is correct, put your wishes in writing. I highly urge people to work with an estate planning attorney licensed in his or her state. Medical professionals can point you in the right direction, but only a lawyer can give you sound legal advice.

Photo Credit: www.sxc.hu - free image

Guide to Free Tax Services

2011-12-28T05:23:00.000-06:00

While attending the 45th Annual CLEW Tax Seminar this past fall, the materials included a resource I had not hear of before -- IRS Publication 910. It is the Guide to Free Tax Services, and includes a listing of free publications, an index of tax issues, and information on free services and programs.

The link I am providing is for tax year 2010, once I see the publication for 2011 I will post an update.

Accessing a Safe Deposit Box Without Probate

2011-12-27T05:23:00.000-06:00

Avoiding probate -- it's the goal of so many people. So what happens if probate is successfully avoided but the decedent had a safe deposit box? In a recent experience I had success by using a Wisconsin Transfer by Affidavit form. PR 1831 allows heirs to receive assets, without opening a probate, if the TOTAL probate assets were less than $50,000. The tricky part can be figuring out if an asset is probate or not. If there is a beneficiary form of any kind (TOD Deed, POD, TOD, Beneficiary form) that successfully transfers, then the asset is NOT part of the probate estate.

I love it when problems can have relatively simply solutions!

Please remember, a blog post is not intended to convey legal advice. Please contact a lawyer for guidance in your specific situation.

Photo credit: www.sxc.hu - free images.

Book Review: The Legacy Letters: Messages of life and hope from 9/11 family members

2011-12-26T05:23:00.002-06:00

A beautiful tribute to those individuals who lost their lives on September 11, 2011, The Legacy Letters: Messages of Life and Hope from 9/11 Family Members is a must read for anyone seeking appreciation for life or seeking to learn more about the familial impact of that tragic day in our nation's history.

Each "chapter" starts with a brief biography of the individual who perished on 9/11. A letter written by a family member follows, almost always with a photo of the writer and the deceased. Do not attempt to read this book without tissue nearby. The loving words and raw emotion of those left behind is palpable. As the parent of young children I often felt a kick to my stomach reading about families very similar to mine who lost someone that day.

I find the title a bit confusing. Legacy letters are usually letters written by the deceased, directed towards the next generation. Instead, these letters are a tribute to the departed. More of a eulogy ten years after the death. I happened upon it by accident; thinking it would be about traditional legacy letters.

Reading this book helps put life in perspective. Life is short. The little moments matter. One never knows when tragedy will strike, out of no where on a clear blue fall day. Enjoy the moment, and find peace. That is what I took from this collection.

Estate Planning Seminars in 2012 - Madison, Wisconsin

2011-12-23T05:23:00.001-06:00

As we prepare to say good-bye to 2011, I am busily adding seminars to my 2012 calendar. Ranging from 45 minutes guest spots in retirement workshops to lunch & learns to 2 hour long seminars, there is an option for everyone. Please review my web site for specific dates and times. Also, I am in the process of adding additional events -- check back for updates.

Enjoy the remaining days of 2011!

Tracking Down Gift Making History -- The Role of a Personal Representative

2011-12-22T05:23:00.001-06:00

Depending on the size of an estate and the year of death, the personal representative may be charged with the task of gathering the decedent's gift making history. Assuming that the giftor had accurately reported those gift on tax returns, the history can be obtained by calling the IRS at 1-866-699-4083. I have yet to use this number, however, other experiences with IRS toll-free numbers have yielded positive results.

Thanks to R. Chistian Davis, Vice President, Private Client Group, US Bank, Madison, Wisconsin, for discussing this information at the 45th Annual CLEW Tax Workshop, presented by the University of Wisconsin Law School.

Remember, a blog is for discussion, and is not a substitute for legal or tax advice. Please consult your attorney and or tax person for advice specific to your situation.

Donor Advised Funds

2011-12-21T11:32:00.002-06:00

Donor advised funds allow a person to establish his or her own fund at either a public or community foundation. Each fund would have its own specific purpose or focus. Donor advised funds can be established through Community Foundations (Madison Community Foundation is an example), Financial Institutions (Vanguard Charitable is an example), and Public Charities (such as hospitals).

If you are considering using a donor advised fund, several things you should consider include:

what are the minimum funding requirements?
what assets will they accept (cash, cars, homes, stocks)?
how many generations of successor are allowed?
what is the frequency of grants being made (annually, quarterly)?
what services are offered (research, meetings, etc.)?
what fee does the foundation charge?

Remember, a blog is not a substitute for legal advice. It is best you speak with an attorney in your state regarding your situation.

Photo credit: www.sxc.hu - free image.

What is a Private Foundation?

2011-12-20T05:13:00.001-06:00

There are two types of private foundations. One is a non-operating foundation, which makes donations to other charities. The most common type of foundation, these entities distribute grants to other non-profit entities. The other type of foundation is an operating foundation, which provides direct services to the public instead of providing funding to another organization.

Private foundations can take the form of either a non-profit corporation or a trust. Both forms are governed by both state and federal law. Most private foundations can continue forever.

Upon dissolution, the organization's remaining assets must be distributed for one or more tax exempt purposes. Typically it involves giving the remaining assets to another non-profit organization.

Thanks to Nancy M. Bonniwell for sharing this information as part of the State Bar of Wisconsin's Annual Estate Planning Update - December 2011. Remember, a blog is not a substitute for legal advice.

Federal Gift Tax Exclusion for 2012

2011-12-19T05:23:00.000-06:00

According to materials for the State Bar of Wisconsin Annual Estate Planning Update, the federal gift tax exclusion for 2012 will remain at $13,000. What does that mean? It means that anyone person can give another person $13,000 that year without triggering the federal gift tax.

Remember, a gift may not be obvious to you. The following are examples of scenarios that may trigger the gift tax:

adding a person's name to your bank accounts;
adding a person's name to the deed to your home; and
addition a person's name to the deed to your vacation property.

Should this reflect your life, it is wise to consult with an attorney and or CPA to discuss possible tax implications.

Wisconsin Charities Struggling

2011-12-16T05:23:00.000-06:00

In a time of decreased funding and increased need, many Wisconsin non-profits are reporting significant funding concerns. According to a recent survey, 25% of Wisconsin non-profits do not have more than 1 month of emergency funds. As a result, many are looking to diversity their funding sources.

Should you be moved to make a donation to your favorite charity, please keep in mind that the IRS will determine the donation was made during the year the check was cashed (called negotiated) and not written. I had this in mind when we completed our 2011-12 annual pledge to our church. We wanted to claim the entire amount on our 2011 taxes. When I sent the check, I conveyed to the organization that it needed to be cashed before 12/31/11. I'm glad I did because their last bank deposit of the year was December 13th.

Please remember that a blog is not a substitute for legal and or tax advice. Please contact an attorney and or CPA in your state.

The IRS' View on Common Mistakes Made When Returns are Submitted for the Deceased

2011-12-15T05:23:00.001-06:00

Below are several common mistakes the IRS finds when reviewing various tax returns (income, federal estate, etc.) associated with a person who has died:

Wrong "Date of Death" is listed -- can have a huge impact because of shifting federal exemption amounts each year;
Wrong Social Security Number is listed;
Simple math errors;
Copies of wills or trusts (when required) are not included;
Inadequate appraisals;
Appraisals are not included;
Failure to include history of prior gifts made by decedent;
Using FMV of house at time of sale instead of Date of Death -- there is a good chance the value at sale is much lower than date of death.

Whether you are doing the form yourself or are giving information to a professional, it will save you time, money, and heart ache if you can avoid these common mistakes.

Remember, a blog is for discussion, and is not a substitute for legal or tax advice. Please consult your attorney and or tax person for advice specific to your situation.

Charities Fight Over Bequest

2011-12-14T05:00:00.002-06:00

The Pittsburgh Tribune Review reports that two charities in Pennsylvania are fighting, in court, over a bequest a women made to a meals on wheels organization. According to the story a splinter group left the original organization, and is asserting a claim on part of the bequest (approximately valued at $285,000). The matter is still pending in court.

As I read this story the voice in my head says, this is why it is important to be very, very clear about what entity is being named in a will. When working with clients I prefer to include the complete legal name of the entity, its federal tax ID number, and the phrase "or its legal successor organization".

Remember, a blog post is not a substitute for legal advice. Please seek legal advice from an attorney in your state.

Photo credit: www.sxc.hu - free image.

How To Fly With Cremains

2011-12-13T05:23:00.000-06:00

Urns for travel? Yes, apparently the exist. The other day I was talking with some clients, and the husband told his wife "when I die, I want my remains scattered in Columbia...the country. And they have special urns for flying." My ears perked up -- they do?

The situation has never presented itself to me before, but I know that travel is never easy. Add in a metal container, sealed, containing human remains and all of a sudden you have an airport nightmare.

Based on a quick Google search, it appears that what is currently advised is to use a travel urn or container, something made from plastic or wood, that can be x-rayed. Metal cannot be x-rayed, and you run the risk of not being allowed to take the item on board.

For up-to-the-minute laws and regulations, it is best to check with TSA or call 1-8660289-9673. Using the agency's search engine (look for the "can I travel with" button), each airline may have its own policy as well.

Remember, a blog is not legal advice. Please speak with an attorney for counsel specific to your situation.

Book Review: What I Learned When I Almost Died

2011-12-12T05:23:00.000-06:00

Gripping would be a way to describe Chris Licht's book, What I Learned When I Almost Died: How a maniac TV producer put down his BlackBerry and started to live his life. The fact that the author was 38, the same age I am now, when his world was turned upside down by a brain hemorrhage, was chilling.

At 162 pages, this book is an amazingly fast read. Bouncing between the morning he found himself at George Washington Hospital's Emergency Room in Washington, D.C. and the years building up to his career, marriage, and overall life, the story is fast and intense. Very much like the life Licht lived, and still does.

Very much in the style of Tuesday's with Morrie, the book is a concise way to remind yourself that in the end, the big picture matters. Ratings, promotions, emails, all mean very little when you think you may not live long enough for you children to have a memory of you.

The title was a bit misleading in my opinion. The book is more a resume and timeline for Licht. From what I could tell, there was no fundamental shift in how he lived his life before and after the hemorrhage. He even writes that his wife had hoped he'd have a more profound change in his behavior after facing death and walking away. At times the book hints of name dropping and resume posturing. Maybe I've lived away from the East Coast too long, but it detracted from a much more powerful message. Still, it is worth a read. Just be prepared to worry about aneursyms for a while after you finish the book.

No More Kisses for Oscar Wilde

2011-12-09T05:23:00.000-06:00

Have you kissed Oscar Wilde's headstone? If not, you're too late. Leaving lipstick marks came into vogue since the literary great died in 1900. And now, after years for adoration, the practice is being put to a halt. All those marks needed to be cleaned, and cleaned, rendering the stone more and more porous. Read more at Time.

What other pilgrimages have readers made to grave sites for the famous?

What Constitutes an Appraisal?

2011-12-08T05:23:00.001-06:00

When dealing with probates, both large and small, obtaining the fair market value of an asset is important for several reasons. One, the probate fee paid to the court is based on the net value of the estate. Two, cost basis for heirs needs to be established. And three, estate taxes may need to be paid if the federal exemption (and in some cases, state) is exceeded.

Many people may have not had much experience with appraisals. Common feelings at the IRS is the appraisals are "crap", and they are willing to go after inadequate appraisals. Concise statement on the agency's part. Here are a few factors to keep in mind to secure a reliable appraisal:

provide a detailed description of the method used to determine fair market value;
appraiser should be qualified and actively appraising properties or available to do so;
appraiser should be objective;
appraisal should include date of transfer, date of appraisal, a description of the property, description of the appraisal process, state assumption or limiting conditions, and the rationale for methods used.

Remember, a blog is for discussion, and is not a substitute for legal or tax advice. Please consult your attorney and or tax person for advice specific to your situation.

Book Review: How to bury a goldfish and other ceremonies and celebrations for everyday life

2011-12-07T05:23:00.001-06:00

Yes, there is indeed a book title "How To Bury A Goldfish: and other ceremonies and celebrations for everyday life". Written by Virginia Land and Louise Nayer it is a compact book filled with moving ways to acknowledge both the sad, joyous, and rather mundane aspects of life. There even is a chapter on how to bury a goldfish, or other small pet, with a degree of humanity and respect.

Organized into seven chapters, the authors offer thoughts on celebrating or recognizing important events in our everyday lives. The chapters include: Everyday; Beginnings; Fabulous Firsts; Red-Letter Days; Transitions; Loss; and Holidays. Guidance ranges from sending a child off to college to helping an elder move to assisted living to losing an unborn child. As I read I kept thinking "yes, that would be a lovely compliment to our lives". So I was not surprised to learn towards the end of the book that one of the authors attends a Unitarian Universalist church -- so do I.

How To Bury A Goldfish: and other ceremonies and celebrations for everyday life has been added to my permanent reference book shelf. I suggest that you do the same. Used copies can be found for mere pennies on Amazon.com.

State Returns Unclaimed Funds to Widow - $244K

2011-12-06T05:00:00.001-06:00

Last month a news story hit that underscores the importance of organizing your financial affairs while you are able. In this story a husband died, and with his death passed the knowledge of municipal bond he had owned jointly with his wife. Going unclaimed, they reverted to the State of Wisconsin. Thankfully the State researches these assets and tracked down the man's widow.

Lesson from this story -- don't trust that your spouse / partner / family will remember all of the various assets you own. Don't even count on you remembering all of them! One easy solution is to create a simple one sheet overview of assets, and keep it with your financial papers. Include savings accounts, CDs, bonds, stocks, insurances, etc.

A little leg work now may save your heirs hundreds of thousands of dollars!

Remember, a blog is not legal advice. Please seek counsel from a licensed attorney in your state.

What's A Bucket List?

2011-12-05T05:23:00.002-06:00

Several times in the past few weeks I have heard reference to "bucket list". The oddest one was in a holiday solicitation from a non-profit. The bucket was a wood bucket filled with plush toys -- a gift for donating $50. Apparently their marketing team was as unfamiliar with the term as I was. According to the Urban Dictionary, bucket list, is a common term for the list of things a person wants to accomplish before dying. I'm uncertain if the term pre-dates the 2007 movie of the same name. Co-starring Jack Nicholson and Morgan Freeman, it follows the lives of 2 terminally ill men as they race to complete their "bucket lists". A Google search also found www.bucketlist.org, an on-line journal where people can note their to-do items, and update readers as they make progress. I guess it is kind of like Facebook for the macabre.

Photo credit: www.sxc.hu - free images

Identity Theft and SSN of Deceased Children

2011-12-02T05:23:00.000-06:00

Shocked would best describe my mindset when reading this Chicago Sun article on how identity thieves are using a government database to steal identities of deceased children. It is considered malpractice for an attorney to list a client's SSN in estate planning documents, yet the government still publishes a "Death Master File" disclosing a deceased child's name, date of birth, and SSN. The only thing that surprises me more is that it isn't used more often. The fact that it is getting attention may bring it to more would be thieves, but maybe also motivate government powers-that-be to make some common sense revisions.

Gifts, Checks, and the IRS

2011-12-01T05:13:00.002-06:00

The holiday season is fast approaching, and that means many people are pulling out the checkbook to write gift checks to family and friends. Under current law the writer can make gifts of $13,000/per year / per person without triggering the gift tax. However, when the IRS is involved, it is important to look into the details.

What if a check is written on December 21, 2011 but not cashed until January 3, 2012. The IRS takes the position that the gift was actually made in 2012 because that is when the check was "negotiated" or cashed. If another gift is made at the end of 2012 and then cashed in 2012, the gift limit will have been exceeded. Why does this IRS take this position? Until the check is cashed, the giftor has the ability to stop payment. Until the check is cashed, the gift is not complete.

When writing checks intended to be a non-taxable gift keep in mind the time frame for it to be cashed, and if possible communicate your desire that the check be cashed in the current calendar year.

Remember, a blog is for discussion, and is not a substitute for legal or tax advice. Please consult your attorney and or tax person for advice specific to your situation.

Book Review: Guide to Wills and Estates

2011-11-30T05:23:00.001-06:00

This week I've read The American Bar Association's Guide to Wills and Estates: Everything you need to know about wills, estates, trusts, and taxes. (3rd edition).

After reading the book I was not certain if it was meant to be a "do-it-yourself" book or simply an educational read. Sadly, it does neither particularly well. For example, it launches into a discussion of non-probate property before giving the reader a sound explanation of what non-probate property it. Overall I felt the presentation of material was disjointed and far to encompassing. Some chapters, such as Estate Planning for Business Owners, could be book in itself.

The book does offer some great web sources on page 10 as well as a check-list at the end. I also enjoyed the hypothetical situations, designed to urge the reader to take action. Lawyers are trained to foresee the worse case scenario, and the authors really out did themselves.

Overall, it is a mildly useful read if you want to gather information on estate planning. It is not a solid resource for do-it-yourselfers. And it is in now way a substitute for quality legal advice.

Living Wills: A Parody and a Necessity

2011-11-29T05:23:00.000-06:00

Recently I came across a 2005 New Yorker parody piece "Living Will" by Paul Rudnick. A great dose of humor to an otherwise difficult and sad topic. What is a living will? In Wisconsin they are also called a Declaration to Physician, which I feel is a much clearer title. Essentially it is a document that tells your medical team what you want to happen if you are in an "end of life" state. Without it your loved ones are left to guess, and those guesses may or may not be followed. Take care, put your wishes on paper, and it is a true gift to your loved ones.

If you still find it a hard topic to address, read Rudnick's piece, and then dive into yours. I personally love number 1 and 12.

Remember, a blog post is no substitute for an attorney. Please seek advice from a licensed attorney in your home state.

States With Transfer on Death Deeds

2011-11-28T07:00:00.000-06:00

Transfer on death deeds are a great alternative to living revocable trusts in that they allow you to leave real estate outside of probate. One draw back is that you must name specific people, not a class, and there is no contingency planning. Either way, they are worth a closer examination if they are an option in your state. According to Nolo.com, the following currently offer Transfer on Death Deeds:

Arizona;
Arkansas;
Colorado;
Indiana;
Kansas;
Minnesota;
Missouri;
Montana;
Nevada;
New Mexico;
Ohio;
Oklahoma; and
Wisconsin

Remember, blog post is not legal advice. Please consult with an attorney licensed in your state for advice specific to your situation.

Free Estate Planning Seminar, Sun Prairie, Wisconsin

2011-11-25T05:13:00.000-06:00

Looking for some free information on issues related to estate planning and probate? If so, you are welcome to attend a free seminar, open to the public, which will cover wills, trusts, and other important documents. I will be giving the presentation, and details are on the web site for Gustafson Law Office.

Thursday, December 1st
6pm -8pm
Hosted by WWBIC at the Sun Prairie Public Library

Get a head start on your new years resolution to get your affairs in order!

Happy Thanksgiving

2011-11-24T05:23:00.001-06:00

I am taking the day off from law and blogging to enjoy the holiday with my family. I am sharing a favorite photo, one I took a few years ago. As we prepare to say good-bye to Fall and hello to Winter, may be pause and give thanks.

Book Review: Alive and Kicking

2011-11-23T05:13:00.001-06:00

Today I am posting a review that I wrote for the Wisconsin Lawyer Magazine in December 2008 of the book Alive and Kicking: Legal Advice for Boomers by Kenney F. Hegland and Robert B. Fleming. Enjoy.

Short, concise chapters on a wide variety of issues, Alive and Kicking is a useful book for any lawyer who works with today’s Boomers. Chapters address issues ranging from estate planning to identity theft to Social Security as well as divorce and remarriage. Written for the Boomer, as opposed to attorneys, the book offers straightforward insight into the issues faced as people age.

The primary strength of the book is its ability to serve as a quick and handy reference guide to the common issues older clients might raise in the course of representation. While it is not wise to practice outside of your given emphasis, estate planning for example, no lawyer wants to answer a client’s inquiry with “I have no idea”. Alive and Kicking can serve as a quick reference to address a client’s question while you develop a more detailed referral if needed.

As with many books related to these timely topics, the book is limited in that each State may have a different procedure – the book is not Wisconsin specific. Moreover, the book will be dated because it does not take into account increasing levels and limits. For example, when addressing the exempt gifts for the gift tax it references $10,000 when the current limit is $12,000 [note the current limit in 2011 in $13,000].

However, those limitations come with most print media these days, and I would recommend the book to anyone whose practice involves serving the Boomer population. At just over 250 pages, it is a quick and often humorous read. One piece of new information I gained was related to the 1983 Congressional action to prohibit federally assisted housing, designated for the elderly or disabled, from discriminating against owners of cats, dogs, and fish.

Scattering of Ashes in Wisconsin

2011-11-22T05:23:00.000-06:00

As an estate planning and probate attorney in Wisconsin, I am a member of a list serve for fellow attorneys across the state. The other day I saw a rather amusing response to a post about the logistics of scattering ashes in Wisconsin:

"I learned the hard way how NOT to scatter ashes....into the wind." -anonymous.

The response was amusing, but it is a question that pops up all the time. Can I scatter ashes at x,y,z? According to the book, Final Rights: Reclaiming the American Way of Death by Slocum and Carlson, there are no specific laws restricting the scattering or depositing of ashes in Wisconsin beyond the fact that if it is on a cemetery's grounds, you need cemetery approval.

I assume this would extend to other organizations that may have concerns for being a final resting spot. If there was a question on Family Feud about the top 5 locations for scattering location in Wisconsin I would wager a bet number one would be Lambeau Field. What is your guess?

Remember, a blog post is not a legal opinion. Please seek advice from your attorney, in your state, for your situation. Blogs are no substitute for legal representation.

Pet Trusts in the News

2011-11-21T14:46:00.004-06:00

I do a lot of seminars, and towards the end I always mention a few reasons to have a trust:

if you have minor children;
if you need to do tax planning;
if you have adult children who are not good with money; and
if you have pets.

Yes, pets raise the question of creating a trust. Sure most family pets do not need a trust. But some do. When might this be an option? If you have a caregiver in mind that would have a hard time financially taking care of a pet, especially one that is older or has extensive medical needs. But there are also animal companions that simply have a long life span. Parrots for example. Or a tortoise.

A trust allows you to create a legal entity, either during life or at your death, that will hold both the animal(s) and funds you set aside, appoint a caretaker as well as a trustee to manage the funds. Regulations vary from state-to-state, so be certain to consult with an attorney for exact laws on pet trusts.

Curious about planning for your 4 legged or winged loved ones? Here is a great article from the Chicago Tribune.

Thanks to my good friend, Larua D. of Fitchburg, Wis. for bringing this article to my attention.

Rising Costs of Long-Term Care

2011-11-18T05:23:00.000-06:00

The 2011 Met Life Survey of Long-Term costs reveals......surprise, surprise, costs have increased in the past year. According to the survey:

the national average daily rate for a private room in a nursing home was $239 in 2011;
the national average monthly rate for assisted living care was $3,477 in 2011; and
the national average hourly rate for an in-home health aide was $21 in 2011.

As the baby boomers continue to age and the average life expectancy of Americans goes higher, long-term care will become an issue for more and more families. Whether it is the person needing the care or the family member who gives or coordinates care, this issue will grow and grow. As a result, people are increasingly turning to long-term care insurance. Before doing so, educate yourself. If you live in Wisconsin, I recommend reading materials created by the Office of the Commissioner of Insurance. Not all policies are created equally.

Remember, a blog is not an attorney. I encourage all readers to seek legal and or tax advice from a licensed professional in his or her state.

Tangible Personal Property -- What's Included

2011-11-17T05:23:00.002-06:00

As I counsel personal representatives in the completion of an inventory form for an informal probate, they often ask "what is included in personal tangible property?" Beyond the obvious items of clothing, furnishings, appliances, etc., I point them to the IRS Instruction for Form 8939 for guidance. According to the IRS,

Tangible personal property includes, but is not limited to: works of art, jewelry, furs, silverware, books, statuary, vases, oriental rugs, and coin or stamp collection.

Should a federal estate tax form be required, it will be important to obtain the date of acquisition of the item as well as fair market value (FMV) at the date of death.

Remember, a blog is for discussion, and is not a substitute for legal or tax advice. Please consult your attorney and or tax person for advice specific to your situation.

Book Review: Nolo's 8 Ways To Avoid Probate

2011-11-16T05:23:00.000-06:00

Nolo's 2010 edition of its book 8 Ways To Avoid Probate is an excellent illustration of why a book is a not a good substitute for legal advice. At first glance it appears to be very user friendly with interesting chapters. I especially liked the fact it included a chapter on small estates avoiding probate.

However, in more than one chapter the book mentions leaving funds to minor children via UTMA (Uniform Transfer to Minors Act). There was no discussion of testamentary trusts. The options were to leave it a child with the child's parent as custodian (under UTMA) or a living trust. Overlooking testamentary trusts is a huge gap in legal options. I prefer testamentary trusts because they allow a parent to establish a trust fund, created only when both parents are gone, for children until the youngest reaches an age they set. It is commonly higher than age 21 associated with UTMAs.

Another short coming of the book is it does not guide the reader through a cost benefit analysis of whether the costs of a trust (establishment and on-going costs) would exceed the costs of probate. Here in Wisconsin the probate fee is 0.2 percent of the net probate assets. That means you multiply assets minus liabilities by 0.002 and get the fee owed to the court. Compare that to a living trust, and it may be less.

Nolo has created some very useful books, this one however is not in my top 10.

Death Certificates, Privacy, and Wisconsin

2011-11-15T05:23:00.003-06:00

One of the first things to do when a loved one dies is to request copies of the death certificate. This is usually done by the funeral home, but if you are doing things on your own, you can make the request to the Wisconsin Department of Health Services. Death certificates will commonly be requested for:

filing a claim for life insurance;
transferring non-probate assets (IRAs, 401ks, etc.);
closing cell phone and other utilities; and
closing social media accounts.

Keep in mind that each entity will likely want an issued certificate for its file. You'll need to order more than one.

On a personal note, I find it troubling that the death certificate calls out the specific cause of a person's death. It strikes me as odd that in our current culture of privacy and data sophistication that these causes are not coded. Why does the cashier and US Cellular need to know the cause of death? There are some things loved ones might wish to keep private.

Remember, a blog is not a legal opinion. Please seek advice from an attorney in your state, specific to your situation.

Common Myths: Parents and Selecting a Child's Guardian

2011-11-14T05:23:00.001-06:00

When I tell people that I am an estate planning attorney they often, wrongly, assume that my entire clientele consists of baby boomers or members of the "greatest generation". In fact, half of my clientele are parents with minor children -- and that is a good thing because they are one population where a will is imperative. Why? A will is the only way to legally declare a guardian for minor children. With Boomers or octogenarians, not having a will is not a huge crisis if their wishes do not deviate from statutorily prescribed distributions of estate. But with parents, there is no assumption about who will raise minor children.

Last month I read a nice article addressing why more parents of minor children do not take action. The author cites 4 myths:

There is a perfect match. I'd call this analysis paralysis....you search and search, but take no action;
Someone will step up;
A letter or email is sufficient;
You don't need to ask the guardian before making the nomination.

Thanks to Prof. Gerry Breyer for posting this article on his blog.

If you have children, take charge now. The last thing your child(ren) need is to loose both parents and then have a dispute over who will raise them.

Remember, a blog is not a substitute for an attorney. Please seek legal advice from an attorney licensed in your home state.

IRA Charitable Rollover

2011-11-11T05:13:00.000-06:00

Under current law, the IRA charitable rollover exception is slated to end on January 21, 2012. Under the law a person aged 70 1/2 may make distributions of up to $100,000 from an IRA directly to a charitable organization and NOT have it count as a distribution of income.

I learned at the 45th Annual CLEW Tax workshop that on March 10, 2011, Senator Charles Schumer (D-NY) introduced the Public Good IRA Rollover Act of 2011 (Senate Bill 557 or H.R. 2502). Under the proposal the income tax exemption would become permanent, apply to people 59 1/2 years of age (instead of 70 1/2), remove the $100,000 cap, and allow rollovers to donor-advised funds, supporting organizations, and private foundations.

Currently the legislation is stuck in committee and is not moving forward. Please check back in the future for updates.

What Types of Transfers Are NOT Subject to the Federal Gift Tax?

2011-11-10T05:23:00.002-06:00

As the temperatures drop and the calendar pushes towards the end year, the giving season is near. Remember, the person who makes a gift may be subject to a gift tax unless it is below the annual exclusion amount (currently $13,000/person/year in 2011) or its is not subject to the tax. Here are three types of transfers (a.k.a gifts) that are not subject to the federal gift tax:

Transfers to political organizations, as defined under Section 527(3)(1);
Transfers to qualifying educational organizations in the form of tuition for education or training. Not included are transfers for books, supplies, room / board, or deposits into 529 college savings plans; and
Transfers for medical treatment so long as that treatment would qualify as a deduction for income tax purposes.

Remember, a blog is for discussion, and is not a substitute for legal or tax advice. Please consult your attorney and or tax person for advice specific to your situation.

Book Review: How to Be A Perfect Stranger

2011-11-09T05:23:00.002-06:00

This past September we learned that one of my mother's neighbors had lost his battle with cancer. Attending the funeral was important to my mom and me because this man had been our neighbor since my parents had moved into the home in 1975. However, we had one challenge. He was Jewish and we had never taken part in a Jewish funeral. Not wanting to offend anyone I reached out to the ministers at my church, The First Unitarian Society of Madison. To my delight Rev. Karen Gustafson (no relation) recommended the book How to Be A Perfect Stranger: The Essential Religious Etiquette Handbook by Matlins and Magida. What a resource it is; one that merits a spot on my bookshelf.

Organized into 29 chapters (by religion), it contains information related to:

history and beliefs;
the basic service;
holy days and festivals;
life cycle events (birth, initiation, marriage, funerals); and
home celebrations.

No matter your profession, this is an excellent resource to be an informed and caring community member. It will not be a purchase you regret.

There is No Such Thing as a Simple Trust

2011-11-08T05:13:00.000-06:00

Trusts -- many people think they are a must. Why? To avoid probate, to keep things simple. Ahhh, what people don't know can hurt them. There is no such thing as a simple trust. Oh sure, the language used to construct the structure of a trust can be simple.

Husband and wife create a living revocable trust, fund it, husband dies and it becomes irrevocable on when the first spouse dies, requiring distributions to survivor.

This is common language associated with the so called simple trust. However, things become much more complicated when the administration of a trust is reviewed. Here is a true story I heard while attending the 45th Annual CLEW Tax workshop.

Same scenario as listed above, however, the surviving spouse never took the annual distribution out of the trust....over 20 years. Upon the second spouse's death serious tax issues emerged. The unclaimed income created income tax issues (it was never reported), and leaving it in the trust was viewed as contributing to the principal of an irrevocable trust. Plus, probate was required to received the 20 years of distributions out of the trust that were never taken.

Folks, this is why there is no such thing as a simple trust. They serve a purpose, but should not be embraced lightly. Seek legal and tax help upon creation as well as each year after to make sure appropriate administration is followed. The IRS is not known to be forgiving.

Is It Time To Update Your Estate Planning Documents?

2011-11-07T05:00:00.000-06:00

Is it time to update your estate planning documents? My personal recommendation is that powers of attorneys be updated every 5 to 7 years. Wills and trusts should last generations, however small amendments may be need to reflect relationship changes (marriages, births, deaths, conflicts between parties, and acquisition of new property). Don’t put off changes until it is too late.

Top Earning Dead Celebrities

2011-11-04T05:13:00.000-05:00

According to Forbes, in the past 12 months the following were the top 5 top earning dead celebrities:

Michael Jackson, $170 million;
Elvis Presley, $55 million;
Marilyn Monroe, $27 million;
Charles Schulz, $25 million; and
John Lennon, $12 million.

The entire list goes out to the top 15. Read more here. In some cases, dead celebrities earn more after death than they did during life. The boon for Michael Jackson's estate has been attributed to a partnership with Cirque Du Soliel, which has launched Michael Jackson: The Immortal World Tour.

The 2010 Tax Relief Act

2011-11-03T05:23:00.000-05:00

At the end of 2010 Congress and the President passed and signed into law the 2010 Tax Relief Act. The law brought many changes to America's tax code, including the federal estate tax. Specifically, the federal exemption level was changed.

The federal exemption level is that amount at which a decedent's estate is subject to filing a federal estate tax return and possibly paying a federal tax. In 2010 there was no federal estate tax. However, until the 2010 Tax Relief Act was signed, the federal estate tax would have returned January 1, 2011, at a level of $1 million. Under this new law the exemption level was raised, to $5 million with an upper tax rate of 35%.

One limitation of the 2010 Tax Relief Act is that it pertains to the years 2011 and 2012; it is set to expire 12-31-12 unless Congress takes action. If the law expires, the federal exemption will be $1 million, with a top tax rate of 55%.

Remember, a blog is for discussion, and is not a substitute for legal or tax advice. Please consult your attorney and or tax person for advice specific to your situation.

Book Recommendation: Final Rights: Reclaiming the American Way of Death

2011-11-02T05:23:00.000-05:00

Do you have questions about whether scattering cremains is allowed in Wisconsin? Are you wondering what about pre-paid funerals in Nebraska? Or regulation of casket sales in Oklahoma? The answers can all be found in a wonderful book I recently discovered, Final Rights: Reclaiming the American Way of Death by Joshua Slocum and Lisa Carlson.

The first half of the book addresses consumer rights issues ranging from green burials to embalming to caskets. The second half of the book answers common questions and concerns related to burial in all 50 states.

Easy to use, intriguing information, and internet resources make this a very usable resource. The current cover price is $19.95 -- I'm certain an afternoon reading this book will allow you to save costs on a funeral far beyond the initial expense.

November 1st - Day of the Dead

2011-11-01T05:00:00.000-05:00

It is November 1st, and in large parts of Latin America that means it is the Day of the Dead. A major holiday used to honor departed loved ones, it is becoming more common in the US as immigrants bring this 3,000 tradition to the United States. Traditions vary from wearing masks and dancing to visiting grave sites to playing the deceased's favorite music or eating their favorite food. What a lovely way share the loves of those gone with those that have just arrived.

My father left us in the fall of 2009. My son was only 13 months old and my daughter was just a twinkle in my eye, not arriving until late summer of 2010. The Day of the Dead is a lovely way, even though we are not Latino, to share with them the loves of their Grandfather. Dinner tonight will feature one of his favorites - Swedish Meatballs.

How might you honor your departed loved ones?

Happy Halloween -- Silliness for the Day

2011-10-31T05:23:00.000-05:00

October 31st, Halloween, and I give you a YouTube treat -- I'm My Own Grandpa. The song brought me many laughs back in law school taking T&E from Prof. Howie Erlanger. Enjoy the laugh.

AB 235 and Possible Changes for Wisconsin's Prenuptial Agreements

2011-10-28T05:23:00.001-05:00

According to Capital Times Reporter, Steve Elbow, changes may be coming for Wisconsin's prenuptial agreements. A prenup, or post-nup in some cases, is a contract between a husband and wife about how property shall be classified during marriage as well as at death and or divorce. They are commonly used in the case of blended families, when their are assets and children that pre-date the marriages.

According to Elbow's report, State Rep. Joel Kleefisch is proposing changes so that judges cannot alter an agreement even if a spouse failed to disclose asset or debt information, if the agreement was coerced, or deemed "unfair" by the judge. The proposal, AB 235, is not without opposition. The bill was met with concern by other members, all attorneys, who clearly feel contract law calls for a remedy if the agreement was entered falsely.

I will be monitoring this legislation and will post updates as needed.

Funeral Consumer Alliance

2011-10-27T05:23:00.000-05:00

Until recently, I had never heard of the Funeral Consumer Alliance. However, after reading Final Rights: Reclaiming the American Way of Death by Joshua Slocum and Lisa Carlson, the organization is now bookmarked on my web browser. FCA is a non-profit organization with the goal of protecting consumer's rights in selecting a funeral. After reading the book, it is apparent that those rights need to be protected. Slocum states that 90 percent of consumers simply do not shop around when purchasing a funeral. Moreover, he states that a person plans, on average, two funerals in his or her lifetime. Without a lot of practice, making pricey mistakes is easy. If you are planning for your own or a loved ones funeral, I highly encourage you to educate yourself using the FCA's web site.

A Family Heirloom: A Teddy Bear From An Old Mink Coat

2011-10-26T05:23:00.001-05:00

Working with a couple last week that are waiting the arrival of their first child, they told me about a baby gift I had never heard of before. One of their parents had taken an old mink coat to a company here in Wisconsin, and had it transformed into a lovely teddy bear for the baby due to arrive later this year.

A quick Google search turned up the company, Stadler Furs. What an innovative idea! Family heirlooms are always a tricky subject for families. This proves to be a lovely way to give an old item new life, and create something that can stay with the family for generations.

I'll have to mention it to my mom, although I'm not sure she is ready to part with her fur. She never wears it, but I'm not sure that means she is ready to turn it into a bear....but maybe.

Self-Publishing Meets Today's Seniors

2011-10-25T05:13:00.000-05:00

Two weekends ago I came across an interesting article detailing how today's tech savvy seniors are turning to self-publishing as a means of passing on their stories and values. According to the article, of the 1.1 million users of the self-publishing site Lulu.com, 17 percent are seniors. Passing on wisdom is not new among the world's elders, but the availability of inexpensive technology allows them to take on an entirely new approach.

Thinking back to my middle school years I remember doing a family tree project and recording my grandparents voices on tape. Oh how times have changed. I'd love to have a book from my elders. How about you?

Does Your Personal Representative Know Where To Find Your Will?

2011-10-24T05:23:00.000-05:00

A will is a guide for the probate court on how you want your probate estate distributed, who should serve as personal representative, and if you have minor children it nominates a guardian. If you take the time and spend the money to complete a will, make certain that it can be found after your death. If not, you've just died without a will!

Last week I learned that an elderly couple I assisted some years ago had both died. Their seven grieving children descended upon the house and were unable to find the wills. I received a panicked call. We needed the original to file with the court, and I encouraged them to look again, this time armed with a description of how I package final papers. To their relief, both wills were found.

Grieving a loved one is hard enough, don't make it any harder by keeping your will so safe that no one can find it. I always encourage clients to tell their personal representative the location of a will, but not the specific contents of the document -- that is private.

As always, I recommend you consult with an estate planning and probate attorney in your home state for legal advice....a blog post is not legal advice.

Tithing Down At Main Stream Churches

2011-10-21T05:13:00.000-05:00

This news blurb states that tithing (offering to a church) is down to its lowest level in the past forty years; in 2009, mainline Protestants gave 2.38 percent of their salary to churches. The article also points out that of offerings made to churches, most go to cover building and operating costs. Only 0.34 percent go to benevolent causes outside of the church. This represents half the level given in 1968 to charitable causes.

I found this article interesting because my husband and I often discuss the "needs" of our church, the First Unitarian Society of Madison. We have an amazing new addition to a Frank Lloyd Wright Building. But an equally amazing mortgage. There is much discussion of how to close the budget gap, but not nearly as much conversation about what UUs can do in the community. Apparently FUS is not alone.

Stress and Cardiac Disease

2011-10-20T05:00:00.001-05:00

Twenty years ago this fall, at the age of 47, my mother had a heart attack. What followed was twenty years of tests, medicines, diets, procedures, and countless doctor's visits. Over the two decades we've learned that her heart has 3 failure modes. Thanks to advances in cardiac research and care, she is able to enjoy time with my two young children.

Earlier this week I took her to her annual cardiac appointment. And I noticed something different than when we first started going. From the doctors to nurses to fliers on the wall, the message was clear -- manage your stress to have a healthy heart. In the past I'd seen and heard information about the right diet, warning signs, walk every day. But this week it seemed that the overarching message was to manage stress. Diet and exercise play a part in it, but so does mindfulness, meditation, and battling isolation.

A course announced on one flier is titled "Skills For A Happy Heart: Learning mind-body skill helpful in the management of cardiovascular disease". It will be held at UW Health, 621 Science Dr., Madison, Wisconsin, Mondays from 11-12 starting November 7th through December 12th.

This is just an observation from the daughter of a cardiac patient. I also happen to be an estate planning and probate attorney who sees illness and death on a daily basis. Have others observed this change? Is it broader than the University of Wisconsin Cardiac Care Unit?

Vitamins - Are They As Good For You As You Think?

2011-10-19T05:13:00.000-05:00

Last Friday I read this article in the Wisconsin State Journal that reviews two recent studies that question whether vitamin supplements are as good for people as they think. One concern is that people are now getting too many vitamins because processed foods have added vitamins as well. Too much a of a good thing is not necessarily healthy. A second concern is that people who take large doses of a specific vitamin may actually be at a greater risk of disease.

While reading the article, passages from the works of Michael Pollan came to mind. He is a critic of processed foods as well as methods to "enhance" foods with vitamins that do not naturally occur in the food. His claim can be summed up with "if your great grandmother would not recognize it as a food, then don't eat it". As with the article in the paper, the thought is that a healthy diet will give you the entire array of vitamins, minerals, etc. Those cited as benefiting from supplements are:

postmenopausal women;
women planning a pregnancy or currently pregnant;
people over 50; and
breastfeed infants.

Given my line of work, I focus on healthy habits as much as possible when I am not writing estate plans or handling a probate. As a mother of young children I was a bit surprised in reading the article. My 3 year old takes a multi-vitamin every morning. Does he need it? Do I? I'll be following up with our doctor soon.

"Leave A Legacy" Campaign

2011-10-18T05:23:00.000-05:00

This was delightful news to read. A planned giving council in Ohio is running a "Leave A Legacy" campaign, encouraging area residents to name a church, educational institution or non-profit as a beneficiary of a non-probate asset. What I find refreshing about this is two things. One, they are focusing on average citizens, not the "wealthy". And two, they are asking people to do an easy, low if not no-cost change...putting a charitable cause on a beneficiary form.

When a person mentions a charity in a will or trust, the cost goesv up. First, the person has to pay an attorney to either create or update an estate plan. And second, the asset will be subject to a probate fee (varies state to state), which will decrease the assets available for distribution.

Straight forward, easy, and inexpensive. Everyone can be a philanthropist!

Digital Inheritance

2011-10-17T05:23:00.001-05:00

This article from the UK caught my attention; it claims that Brittons are leaving passwords in their wills. What I find shocking is that the article does not address the implications of putting passwords into a will. Here in the US a will, once filed, becomes a public record. Anyone can go the courthouse and review it. Maybe they are not public in the UK. But I'd still be hesitant to put a password into a document that will be filed and read by countless people.

When I work with clients I recommend that they put all passwords on a single sheet of paper, kept safe at home in a fire proof box. That way it is accessible if needed. Passwords for the following are important to log:

banking accounts;
retirement accounts;
credit cards;
on-line bills;
social media; and
digital media stored on the cloud.

When drafting a will, one should give thought to their digital assets. This would include:

web domains;
intellectual property;
images and video;
music; and
software.

The rights to these assets would be passed in a will since they are a form of probate property.

Remember, a blog is not legal advice. It is designed to share thoughts and ideas. Please consult a lawyer in your state for specific legal advice.

How To Select A Guardian For Minor Children

2011-10-14T05:23:00.000-05:00

Several years ago I wrote an article on how to select a guardian for your child(ren). The publication is now defunct and the web site no longer running. It is an article I point clients to at least once a week, so I am going to re-post it here today. It was written for a January publication, hence the references to New Years resolution. No matter what time of year, it is a valuable piece with sound information.

It is a new year, and like most people you may have a to-do list featuring your New Year’s resolutions. Whether you are an expectant or new parent or a seasoned veteran with teenagers, you may want to add “Nominate a Guardian for my Child” to your list.

What is a guardian? A guardian becomes the substitute parent for a child and makes day-to-day decisions a parent would make if the unthinkable happens to both parents. Every minor must have a guardian, and should the unthinkable happen a court will appoint someone to fill the parents’ shoes.

Why nominate a guardian? If you do not nominate a guardian, then the potential exists for various family and friends to seek guardianship over your child. The uncertainty, legal costs, and possible contentious atmosphere surrounding such an event would be less than ideal. By nominating a guardian for your child you not only ensure that your wishes will be considered by the judge, but you also allow for a more smooth transition following a tragic event in the life of your child and surviving family and friends.

Who should you nominate? Thinking of someone who will step into your shoes is almost an unbearable thought; many of my clients tear-up when discussing the issue with me. When working through this emotional area I find that it helps to have some concrete questions to answer. For example:

· Who has a close bond with your child;

· Who is in good health to raise your child;

· Who shares your family’s values in terms of religion and education;

· Who could realistically take on the financial responsibility of raising your child;

· Who lives in an area where you would want your child raised; and

· Who does your child want to live with (assuming they are old enough to talk about this issue).

How do you nominate a guardian? Many clients I have worked with believe that having a godparent is sufficient. It is not. A will is the only legal form of nominating a guardian for your minor child. A Wisconsin will can be completed by working with an estate planning attorney or by completing a basic Wisconsin will that is available from the State Law Library and other establishments. One important consideration in deciding on whether to work with an attorney is whether you would like to create a will that nominates a guardian and also places your assets into a trust fund for the benefit of your child; with no trust, a child would gain possession of the assets at age 18. Do not underestimate your assets; a house, retirement account, and life insurance can add up quickly.

What should you tell the guardian you’ve nominated? First, before nominating anyone in your will you should ask them if they would like to serve as a guardian. Urge them to be honest with you because you want your child to be placed in the most supportive and nurturing environment possible. Second, I advise all of my clients with minor children to leave a letter to the guardian expressing his or her wishes for the child’s upbringing. For example, how much should be spent on holiday and birthday gifts; vacations that should be taken at specific ages or to special places in the world; and preferences for the continuation of sporting or music abilities of the child.

If you are a parent, you have without doubt experienced a moment of wonder, what would happen if I were not here? Nominating a guardian is a process by which you can answer that question and diminish the twinge of anxiety in the years ahead.

Who's The Client In A Probate?

2011-10-13T05:23:00.000-05:00

Probates pose an interesting situation for attorneys because they can generate three different "clients" to represent:

represent the estate itself;
represent the personal representative in his/her role in the probate; and
represent individuals who have an interest in the estate.

Unlike lawyers on TV, real life lawyers can have only one client. To do otherwise would create a conflict of interest. The November 2009 edition of Wisconsin Lawyer details the reprimand of a Wisconsin attorney who attempted to represent too many clients in one probate.

In my experience, a primary task of estate planning attorneys is to educate clients. One topic that is often overlooked is who is the actual client. Remember, there should only be one, and that guarantees each client receives unbiased advice. It may sound nice to have one attorney answer all the questions about a loved ones death, but it is not wise.

Patient Confidentiality and Powers of Attorney?

2011-10-12T05:23:00.000-05:00

How do powers of attorney for health care and client confidentiality co-exist? This question came to my mind while reading an article in the Wisconsin State Journal over the weekend. Apparently a Middleton man is suing his physician and others after the doctor called his mother (following surgery) and disclosed the patient was HIV positive. Asserting the doctor violated state law, the patient is now suing. What I find interesting is that the article does not mention whether the man's mother was operating with authority established in a power of attorney for health care. If so, it raises the question of whether a patient maintains confidentiality....I'll be watching this case and looking at my own POAs more closely.

When Parents Die, Don't Forget The Cemetery Plots

2011-10-11T05:23:00.000-05:00

Last week I opened a new probate file. Three adult children came to my office for assistance in the probate of their mother's estate. Their father had died a few back, and now they needed help transferring the assets. One asset came up that they would have overlooked, as I'm certain many do....the rights to cemetery plots.

It turns out that their parents had purchased five plots, and now only two were used. What will happen to the remaining three plots? A quick call to the cemetery sexton, and we had an answer. The children will decide who will get a plot and we'll send a letter to the sexton so that new easements can be drafted.

It was my own personal experience that led me to inquire about extra plots; my great-grandparents had purchased numerous plots in the small Wisconsin town were my mother was raised. Some remain open, and have passed from one generation to the next. It is an asset often forgotten about in traditional probate matters.

Remember, reading a blog post is not the same as seeking legal advice. Please consult with an attorney before taking action.

Tony Curtis' Estate Plan

2011-10-10T06:15:00.000-05:00

Recently I was reading a Forbes' article on the brewing family dispute in the estate of Tony Curtis. Apparently he changed his will several months before his death, and in that change left everything to his 5th wife and explicitly stated he was leaving nothing to his five children. That fact does not shock me, I have clients who do the exact same thing. It is relatively common in blended families. What shocks me is Mr. Curtis was either not advised or did not take the advice of his attorney to explain why they were not mentioned in the will. Would an explanation have prevented the brewing arguments in court that his will was changed under duress or fraud? Maybe not, but possibly. Parents are not required to leave anything to children, and stating why can go along way. If not, emotions will run high. Especially when the 5th wife auctions off hundreds of personal items, and gives none to the children.

A blog is not a replacement for an attorney. And if you hire an attorney, you may not like what they suggest (i.e. writing a letter of explanation) but it usually is given with the intent to minimize family feuds.

Joint Ownership Between Generations

2011-10-07T05:23:00.000-05:00

It's a typical scenario. Elder in a family starts thinking about his/her death and his/her property. They want to avoid probate, and do not want to pay for an attorney. So, operating on what they think is wise, they start adding the name of a younger person to the deed or title. Life goes on, they die, and then the problems start. And they usually end up in the office of an attorney, one of the things the elder had hoped to avoid. And in some cases, the elder may end up in an attorney's office before dying. Why? The younger person that was added to the title is now bankrupt, divorced, being sued, or died themselves....and what happens to the property then? The answer is usually not what the elder wants to hear.

Forbes addressed this issue well, and the Wills, Trusts, and Estates Prof Blog offered a concise summary. Read more by clicking on the links.

I cannot emphasize enough how important it is to hire a lawyer to consult on estate planning measures. A blog is not legal advice, it is food for thought.

Want a FREE Bottle of Red Wine?

2011-10-06T08:40:00.000-05:00

Dear Readers,

Once again I am participating in the American Heart Walk to raise funds for education and research. My original goal of $380 ($10 for each year of age I am on walk day) has been met! I want to see how much I can raise, and am now offering a FREE bottle of red wine. I will draw one name from the list of all my supporters walk day. Want to try to win? You can sponsor me on-line(requires a minimum of $25) or post a comment and I'll get you information on where to send a check. Deadline is 7am this Saturday, October 8th.

Help me raise funds. If not for the advances in cardiac care, my mother never would have lived to meet her grandchildren. And that is why I walk, and why this is the only cause I solicit for.

Thanks!

Steve Jobs, Feb. 24, 1955 - Oct. 5, 2011

2011-10-06T06:22:00.003-05:00

Twitter had a brief "buckle" in its processing yesterday under the weight of tweets related to the death of Steve Jobs, who died October 5th, 2011. One I read said "few people can say they've changed the world." -Dave Ramsey. I couldn't agree more. The NY Times has a lovely article chronicling the outpouring of grief and tributes that began to surface Wednesday evening. I'm saddened to learn that pancreatic cancer has claimed yet another amazing human being.

Wisconsin Historical Society Receives $500,000 Gift

2011-10-05T15:08:00.002-05:00

According to the Capital Times, the Wisconsin Historical Society has been awarded a gift of $500,000 from the Jeffris Family Foundation. The gift is intended to be used for official recognition of the State's historical treasures.

I always enjoy reading about donations and gifts to non-profits. However, I always wonder if large gifts like these dissuade others from making more modest gifts?