Taking A Summer Vacation

The outgoing message on my email and voice mail alert those trying to contact me that I am "out of the office" until Tuesday, September 4th.  For those who've heard the message, they assume I am taking a long vacation.  No, I'm not.  The time has been blocked off to allow me a chance to focus on a large project that has been on again off again for several years.  I'm writing book.  A little one.  The topic is how anyone, even the middle class, can be philanthropic.  So, in an effort to give my writing all I have, I've decided to take a break from both of my blogs until Tuesday, September 4th.  I told myself that I'd have a draft by the end of summer.  And summer's end is quickly approaching.

Thanks for checking in, and I'll be back after Labor Day with new thoughts.

Codicil: What It Is And What It Does

Codicil is a fancy word for an amendment to a will.  Executed in the same manner as a will, meaning a date and signature witnessed by two people (those are Wisconsin requirements), it modifies an existing will.  So, if you want to change the person named as guardian for a minor child, the back-up personal representative, of the percentage of your estate you are leaving to the local humane society -- a codicil is an easy fix.  A new will is probably not needed.

I do encourage you to seek the counsel of an attorney licensed in your state, one who focuses on estate planning and probate.  When making changes on your own, you risk invaliding a current will or creating confusion if the amendment is not clear.

Thanks for reading, and have a great weekend.

Image credit:  www.sxc.hu - free image

One Lucky Dog in Texas

A common question posed by clients is "can I do that?".  More often than not the answer is yes, as long as it doesn't violate public policy.  Estate planning, the process by which you create a will or trust, allows a person to take charge of a situation and tell the court what to do with his/her stuff when s/he dies.

Case in point, a man in Texas recently died and left all of his possessions to a trust for his dog.  The man's partner had predeceased, and those possessions consisted of enough antiques and collectibles to fill ten houses.  Various estate sales followed, with proceeds going to the dog's trust.  And as a trust must eventually end, upon the dog's death, the remaining balance will be distributed to the man's midwestern nieces and nephews.

So yes, you can do that if you mean can I leave my stuff to my dog, or cat, or bird.  Estate planning is about taking control.

Oh, and for the record, the dog above is named Lucky.  Appropriate wouldn't you say!

Image credit:  www.sxc.hu - free image.  A random dog, which reminds me of the dogs of my childhood.

Americans Living Longer, Fitter, Wealthier Lives

Surprise would be the adjective I'd used to describe myself after reading this blurb on NPR's web site; older Americans are living longer, with more money, and are more fit than prior generations.  I should probably qualify the adjective, pleasantly surprised.  According to the study cited, Americans live longer, are healthier, and have more money than prior generations of elders.  Better health is attributed to advances in cardiac and stroke health care, and more money is associated with the fact more women work (in advanced years) than ever before.

While there is still room for improvement on obesity rates, the news is refreshing.  If you are 65 today, you can expect to enjoy another 20 years of life.  Not quite as long as the number one ranked nation, Japan, where their current 65 year olds can expect to celebrate an 89th birthday.

So, if one makes it to 65, there is a good chance they'll close in on an 85th or 90th birthday.  With that advancement will come other social changes.  Later retirements, greater need for money tucked away for retirement, voting blocks.

As I make my way through another work week, I'm pleased to read some positive news....it is too infrequent.

What Is Conspicuous Giving

Charitable giving is a side interest of mine, so much so that I am currently writing a book on how philanthropy is not out of reach for those in the middle class.  So, this article caught my attention.   A play on the phrase "conspicuous consumption" (buying to get attention) springs the term "conspicuous giving", whereby donations of time or money are made to get positive attention.

Oddly, my family has walked away from the conspicuous consumption associated with the winter holidays; except for a few small gifts for our small children, we write checks to non-profits that touched our lives that year.  We are not giving to seek approval. In fact, we upset quite a few people with the decision.  Comments like "you are robbing your children of Santa....it's horrible" filled the holiday air.

The one time I felt pressure to give was when I worked for the Wisconsin Government and it was the combined campaign.  Essentially government agencies competed with one another to see which could have the highest percentage of giving to the United Way with direct payments on pay day.  I opposed this type of giving and opted out.  I caused a wrinkle in the office, and my Director was not pleased.  I give.  I give on my own for reasons I want.  Giving so that an organization can "win" a competition doesn't work for me.

Why people give interests me.  Why do you give?

• habit
• makes you feel good
• support a cause that is important to a friend or loved one
• recognition
• tax break
• other?

Image credit:  www.sxc.hu - free image

Can't You Just Look It Up?

Certain professions lend themselves to being the go-to person for answers at family gatherings.  CPAs are likely questioned about whether something was a legitimate tax write off.  Doctors are quizzed about a mysterious pain somewhere on a party goers body.  And lawyers are asked about the law.  Sadly our answers usually result in irritation rather than satisfaction.  For example:

Party Goer:  Hey Melinda, you're a lawyer, right?

Melinda:  Yes....I focus on wills, powers of attorney, probate....basically illness, death and taxes.

Party Goer:  Okay....I got a question for you.  I work with this guy who is going through a divorce in Florida.  And his employer instituted a new "no leave" policy because of the recession.  And this guy hurts his back driving to a seminar in Texas, and now he can't work.  The employer should have to pay him, right?

Melinda: Well, it depends.

Party Goer:  What do you mean.  Go look it up in a book -- isn't that what law school taught you?

Melinda:  Actually no, it taught me how to think like a lawyer.  As long as the courts and legislators are open for business, the law is in constant flux.  As I launch into a discussion about the legal process and why I can't answer this "simple" question, the party goer's eye glaze over.

Law school takes a normal human being and transforms him or her into an attorney.  The best description I've heard of it, is it it like being on Jeopardy while going through Boot Camp.  We read books, but not to memorize laws.  We read to learn about issues, spot problems, analyze and argue.  Many cases I read were from England in the 1700 and 1800s.....slightly outdated, but valuable in the concepts they highlight.

So, the next time you ask a lawyer a "simple" question, don't be annoyed when he or she says "it depends".  That is the truth.  Law is about arguments, about the gray matter of the world.  As a favorite law professor of mine said, "if you think law is like a bus schedule, you are in the wrong place."

Image credit:  www.sxc.hu - free image

Three Reasons To Make Copies of Beneficiary Forms

We live in an electronic age, but there is still a place for paper.  Real paper.  I'm married to an electrical engineer, and this fact baffles him.  Here are three reasons why I advise my clients to keep copies of beneficiary forms.

1. It confirms the forms say what you think they say.  Remember, the form controls.  So, if an ex-partner is listed, s/he will inherit under the form should you die. Beneficiary forms trump wills.  You'd be surprised how many of my clients are shocked to discover their forms do not say what they thought they did.
2. Copies provide a trail for your loved one upon your death.  Jobs change, careers change, and over a lifetime you can leave a mess of IRAs, 401ks, and insurance policies scattered about your career path.  You may know where they are, but if you're dead, who else will know?
3. A hard copy beneficiary is a way for you to make the financial institution accountable.  Don't count on them not misplacing the form.  They can, and they do.  I've seen it countless times.  Without one, one of two things happen; the assets fall into probate or they are distributed according to a plan the financial institution establishes (i.e. nearest living blood relative).  Recent years have shown us that financial institutions are flawed.  Don't trust them not to loose key documents.

And there are the three reasons why I advocate for making hard copies of your beneficiary forms.  With that I'll leave you to your weekend.  Enjoy, and thanks for reading.

Image credit:  www.sxc.hu - free image