Middle Class Philanthropy: How anyone can leave a legacy

Middle Class Philanthropy: How anyone can leave a legacy

By Melinda Gustafson Gervasi

November 8, 2024 

"Predating democracy, capitalism, organized religion, and as old as humanity itself, philanthropy exists because things often go wrong, and things can always be better". I wrote these words back in 2013 in a small book titled Middle Class Philanthropist: How anyone can leave a legacy.  Eleven years later I find myself pulled back to those sentences.  When life takes a wrong turn, we can lean into our own power and push to improve our world.  

Image by M. Gustafson Gervasi, 2024

At dinner this week my 16 year old son suggested our family add more charity runs to our family calendar.  “Mom, you know that run we are doing in March (2025) to support local refugees ... .are there more like that that we can do?”  My son knows that he can pour his cross country running ability and energy into a local organization to fuel a cause that he views as vitally important.  And so can you.

We are not all runners. We are not all wealthy.  Yet we can all be philanthropists. One chapter of my book opened with the following quote by Douglas M. Lawson, “Philanthropy flows from a loving heart, not an overstuffed pocketbook”.  After nearly 20 years as an estate planning and probate attorney I have worked with countless philanthropists; none of whom have a seven figure net worth.  All of them made a difference in the world they left behind.

November is a month with numerous Philanthropy Day events.  They almost exclusively focus on the common view of philanthropy; the top 2% giving to nonprofits they deem worthy.  Yet that does not have to be the only approach.  No matter the size of your gift, when done strategically, it can have a lasting impact on something you value and hold dear. Read more about every day people who made end of life gifts with a lasting impact in my book.  Simple approaches include naming a nonprofit as a primary or contingent beneficiary as a recipient of a small portion of:

• Retirement Accounts 
• Life Insurance 
• POD (pay on death) form for savings accounts 
• TOD (transfer on death) form for brokerage accounts 
• The residue of your will

Throughout November my blog posts will focus on philanthropy by Middle Class Americans.  Be the change you want to see in the world.

Thank you for reading.  Remember that a blog post is not legal advice; it is meant to spark thought and reflection.  Seek legal counsel from an attorney in your home state for advice specific to your situation.  Be well. 

Don't Forget to Plan for Your Pets: An Estate Planning & Probate Attorney Takes Cats to the Vet

Don't Forget to Plan for Your Pets: An Estate Planning & Probate Attorney Takes Cats to the Vet

By Melinda Gustafson Gervasi

October 28, 2024

Artemis Plays Hide-and-Seek in the Wall Cabinet - image by M. Gustafson Gervasi

Normally my household responsibilities are clustered on nights and weekends, leaving my weekdays available for clients.  Today was not one of those days.  A previously scheduled annual vet visit for two of our four cats was crowded out of my weekend calendar due to my high schoolers’ cross country commitments.  Fall is a busy time in our home.  So, on a Monday morning I threw on casual clothes (that would soon be covered in cat fur), fished out the cat carriers, and wrangled the twins in record time.  Cages secured, we piled into my car and headed south on Highway 14 to our vet clinic.  Both cats received clean bills of health and I had a nice chat with our veterinarian, someone I have known since we were in high school together.  The excursion was uneventful.  And for that I am thankful.  However, I am also prepared for challenging times.

Cats have been a part of my home my entire adult life.  As an estate planning and probate attorney, I have also taken steps to make sure the care of our furry family members is not compromised should I die or be too sick to care for my cat crew.  My estate plan includes a pet trust, which is more common than you might think.  I also have a Power of Attorney for Finances that explicitly grants my agent to make financial decisions regarding my pets.  

A pet trust is a tool that transfers ownership of any pets you own at death (legally pets are considered your property) as well as some cash funds.  The trust holds the pets and the cash, which is used by a trustee you appoint to pay for vet bills, grooming, food, medicine, etc.  My trust even says where any unused funds should be donated when the last of my pets dies.   But what if I do not die?  What if I am alive but too sick to manage their care?  Under my Power of Attorney for Finances I have included language so that my agent (first my spouse, second a local bank) can secure lodging, vet services, etc., if I cannot.  Having practiced estate planning and probate for nearly 20 years, I am aware that what used to kill us immediately no longer does.  We may survive, but not in a capacity to resume our prior habits and to live independently. 

Estate planning boils down to taking control of who will do what when you no longer can.  For all of my fellow pet owners out there, please do not overlook making plans for your feathered and furry family members.  Even if you do not have the time or financial resources to create the documents described here, take a few minutes to leave notes related to your pet companions.  Any amount of organization can be a gift in the event of a medical crisis:

• Name, location, and contact information for your veterinarian
• Name and contact information for pet sitter(s)
• Information on pet health insurance if you carry it
• Instructions for feeding, especially if prescription food is needed
• Instructions and location of medications
• Grooming schedule, including contact information for any professional service you use
• Name and contact information for short-term and long-term caretaker for your pet if you are in the hospital or care facility for an extended stay
• Notes on any subscription deliveries for food or supplies that are auto filled and delivered

 Please note, a blog is not legal advice.  It is meant to spark thought and reflection.  Please consult an attorney licensed in your state for counsel specific to your situation.  Thank you for reading.  Please share with others who might find this piece helpful.  Be well!

Decluttering! The Overlooked Aspect of an Estate Plan

Decluttering! The Overlooked Aspect of an Estate Plan

By Melinda Gustafson Gervasi

October 22, 2024

Cross Country Meet, Image by M. Gustafson Gervasi 2024

Confession, I am a competitive person.  Challenge me to something (within reason) and chances are I will bite.  Connect the challenge to decluttering my home, and you are guaranteed I’ll jump at the opportunity.  That was the situation late this past summer.  A dear friend posted a Facebook challenge for the Minimalist Game, and she tagged me.  Having played this game a few years ago, there was no hesitation.  I accepted the challenge; game on!  We were going to spend September purging items from our homes.  

The game starts out easy, on the first day of the month you purge one item from your home.  On the second day you re-home two items.  On the third day of the month, you remove three items. And it goes on throughout the month.  While it may start out easy, the game gets harder and harder as the number of daily items increases.  How do you get rid of 24 items one day and 25 the next?  Tossing an item into the trash becomes the obvious and most tempting option.  However, I am both highly frugal and concerned about overflowing landfills. I forced myself to seek out other options before adding an item to the garbage bin.

As an estate planning and probate attorney I regularly hear clients ask “how do I make my death as easy as possible on my family?” My answer is always to be as organized as possible.  And in the quest to be organized, consider a purge.  To be realistic one day you are either going to move, and move all of your things.  Or you will die, and someone else will move all of your things.  The fewer things you have, the easier it will be. So do not put off until tomorrow something you can do today, clear the clutter!  It will be a gift in the end, either or yourself or to your loved ones.

For our September game my friend and I modified the rules to reflect our busy lives.  We let go of the rigid requirement of on day 1 you purge one item, day two you purge 2, etc.  Instead we calculated the sum total of 1 to 30, which tolated 465 items.  That was our goal.  Next, we created a spreadsheet on Google Sheets and shared it with each other.  Kudos to my friend, she achieved her goal.  I however did not.  Life got in the way.  Too busy with work.  Then too busy with school events for the kids.  And then I just needed downtime to rest.  If I cannot remove 465 items from the very home I live in when I am operating under a normal schedule (not one driven by grief or urgency), then how will your loved one fare?  I did remove 350 items.  Here are some tips I can offer from my own experience:

• Have an accountability buddy – in this case my friend could see my progress (or lack of progress) on our shared Google Sheet.  We also texted one another pictures of car trunks filled, headed to the thrift store.  Get a buddy for this activity, it is a chore made more fun with a friend. 
• Document your progress.  A simple spreadsheet with a tally was a great way to stay aware of what progress I had made, and when I had started to stall.  It’s hard to ignore numbers.
• Give it away via Porch Pick Up.  Use social media to post pictures of what you are looking to re-home and set it out for pick up on your porch.  I am amazed at how quickly some items are snapped up. One person’s trash is another person’s treasure.  For example, September 1st I met a lovely neighbor who was delighted to take a bottle of whipped rum I pulled from the back of a cabinet.  It had sat on our shelf from a party long ago, and was not a taste my husband or I enjoyed.  A picture posted to our neighborhood’s Facebook page found it a new home in under an hour!  Hauling items away is a job in and of itself; use porch pick up and people will do the hauling for you! 
• Find a program with small children to take things you cannot recycle.  Whether it is your local elementary school, city library, or church youth group, these programs can turn old holiday cards, plastic straws and assorted belongings into art projects for kids.  It may one day end up in the landfill, but its life will be extended and that youth program won’t have to spend money on supplies. 
• Donate to a thrift store that supports your values.  In our home the go-to donation pile is for the Dane County Humane Society Thrift Store.  We are a cat family.  A four-cat family.  Yes, we have 4 felines in our loving care.  Which means we are at our limit….we cannot help another cat by opening our home.  We can however open our closets, cabinets, and drawers to purge items that are gathering dust.  My teenagers warmly embrace letting go of possessions when they know it might be sold at the thrift store, which uses the revenues to support the mission of the Dane County Humane Society.  What is your passion?  
• Do not put off purging for a rainy day.  If you have piles of plastic deli containers you might use one day, give them away now for someone who can use them now.  Chances are you won’t remember where you stashed them, and then you’ll find them 2 years later.  We live in a society that allows us to buy anything we need with a few simple keystrokes, and have it delivered to our doorstep.  If you think you are saving money by holding onto things, remind yourself you are paying money to store all of these collections.  Space is not free.  We all pay per square foot – in rent, or mortgage payments, or on lost investment dollars.  

Cold Kentucky Rain - Image by M. Gustafson Gervasi 2024

We are well into October now and the Winter Holidays are coming up quickly.  I plan to set another small purge goal for now until December 1st.  Dear Reader, you are my accountability buddy now – my challenge is to purge another 200 items from our home.  That is 50 items per human.  It can be as small as a notebook or as large as a piece of furniture.  Check back in December to see if I have any more lessons to share on the topic of decluttering.  It is an often overlooked aspect of estate planning.

Follow my blog!  Enter your email address above (upper right) to receive alerts for new posts.  And share this post on social media with those who might benefit.  And as always, remember that a blog is not legal advice.  It is meant to spark thought and reflection.  It is best to seek legal advice from an attorney licensed in your home state.  Be well and thank you for reading. 

 

A Lesson From The Bard On Estate Planning

A Lesson From The Bard On Estate Planning

October 14, 2024

By Melinda Gustafson Gervasi

Red taillights sprawled in front of us as we headed east along Wisconsin’s Highway 14.  It was after 10pm on a Sunday evening, and we were one of the many couples who had made the annual journey out to American Players Theater in Spring Green, Wisconsin.  As the road entered into the more populated suburbs it widened into two lanes and my breathing eased just a bit, as it always does when I leave a highway known for its deadly accidents.  High speeds, deer running about at night, and an undivided highway make for a tense drive.  Especially having just watched King Lear; a play where nearly every character dies in the end.

It was a night out for my husband and I.  Our teenagers were at home, focused on their homework with a simple pasta dinner.  Yet, sitting there under a night sky dotted with stars, my mind could not quite relax into the moment.  Instead it dashed about, just like the bats flying around the stage lights at this picturesque outdoor amphitheater situated in the woods of South Central Wisconsin.  As the three act play unfolded, my work brain kept kicking in.  I’ll blame Shakespeare...

The Stage at APT - Image by M. Gustafson Gervasi 2024

King Lear may have been written in 1604, however, it’s full of modern estate planning concepts.  It opens with the King directing his three daughters to state their love for him.  Two daughters comply, professing their love and devotion in front of an audience that senses their deception.  Lear’s third daughter, Cordelia, refuses to engage in such behavior and remains silent.  Her silence causes Lear to fly into a rage.  He banishes Cordelia and divides his kingdom between his other two daughters, Goneril and Regan.   Listen closing and you will hear the words of my profession: heir, issue, perpetual, and disclaim.  You will also witness the pain and suffering a parent may experience when they relinquish control of their assets to dishonest children.  Lear’s plan failed to unfold as he hoped, and he found himself descending into madness while wandering around in the middle of a horrible storm. Oh King Lear, why did you not consult your lawyer first!

If you would like to minimize the level of Shakespearian drama in your own estate plan, avoid copying King Lear.  Quite simply, do not make a plan when you are emotional.  Here are three simple ways to keep the emotion low, resulting in a sound estate plan that you will be content with:

• Gather information on your family, assets, liabilities and goals.  At my office I accomplish this through a client questionnaire.  The form helps my clients capture information and feelings about their estate plan.  
• Sketch out a draft of your plan, then pause to reflect on how it feels.  With my clients we meet initially to review their questionnaire and determine what documents they need and what the forms should say in order to accomplish their goals.  This meeting is followed by a second meeting held a week or two later.  Then I walk them through the forms paragraph by paragraph.  They can ask questions, and they can make edits.  It is the perfect time to dial back the emotion and drama a hastily made plan can generate.  
• About 10 to 14 business days later, finalize your estate plan by executing it in the presence of witnesses (each state in America has its own witnessing requirements – make sure you follow the correct laws).   

In play parlance, this would be three acts.  One, setting up the situation by gathering your thoughts and goals on estate planning.  Two, rising action where you see those thoughts on paper and decide whether to move forward or get out the eraser.  And three, the resolution of the situation by ending with a legal execution of the paperwork.  

Thank you for reading.  Keep in mind that a blog post is not legal advice.  It is meant to spark thought, reflection and conversation.  Always consult a licensed attorney in your home state for advice specific to your situation.  Be well and may your estate plan end in a less tragic way than King Lear's.

Want a Stellar Estate Plan? Have These 4 Conversations!

Want a Stellar Estate Plan?  Have These 4 Conversations! 

September 23, 2024

By Melinda Gustafson Gervasi

Image by M. Gustafson Gervasi, 2024

September is National Preparedness Month, which aims to remind the general public about the importance of being ready for disaster and emergencies.  In 2024 there is a specific theme, conversation.  The title “Start the Conversation”, is a campaign that nudges the public past its resistance about addressing potential risks and dangers. It encourages the public to have regular talks with loved ones about how to handle emergencies. While the focus of National Preparedness Month is on natural disasters, such as floods and hurricanes, the motivation fits well in my focus area – estate planning and probate.

Estate planning is the act of creating documents that state who should act if you are alive but too sick to make decisions about our health care as well as finances, as well as, who will handle your final affairs.  Moreover, an estate plan directs where your assets will go after death.  Illness and death are a given for all of us; it is not a question of “if”, but a question of “when”.  A sudden illness that leaves you incapacitated or an untimely death can rock the ground of your loved ones much more severely than an earthquake.  It will happen, so be prepared and take action now while you have the opportunity. 

Whether you are creating a plan for the first time, or you are updating an out-of-date plan, or you are looking to enhance your current documents, here are 4 conversations that will elevate your plan to A+ standards:

1 - Talk with yourself and get real with your situation.  None of us are immortal.  Illness and death will find us all, so act while you are able and take control over who you appoint to make decisions when you cannot.  Be honest with yourself and nominate people who have the skill-set to manage health care decisions, financial matters, and the assortment of final affairs tasks (filing taxes, making funeral arrangements, cleaning out your home).  

2 - Talk with your money people.  From your financial advisor to the benefits manager where you work, to the retirement office for your investments or pension – it is crucial you communicate with these people to confirm what you own and what happens to those assets or benefits upon your death.  Do not assume you know, confirm it. While we live in a digital age, I personally prefer a piece of paper to keep in my 3-ring binder that serves as an easy to access roadmap to those I’ve put in charge.  It is likely to be far easier for the person you appoint to open a binder you create than your phone, computer, email, etc.

3 - Talk with the people you appoint to act on your behalf.  When you nominate another person to make your health care and financial decisions when you are too sick to act, or appoint someone to handle your final affairs at death, talk with them about your wishes and preferences.  Even better, put those thoughts in writing. A simple letter with bullet points can be a lighthouse in the fog to someone who is not only grieving, but also making decision after decision in the wake of your death. Check out another post I wrote specifically on what to include in such a letter, click here.

4 - Talk with the caregivers you name in your paperwork.  For those with minor children, the legal way to nominate a guardian of your children is via your will.  Give great consideration to who nominate. Who shares your values on education, religion, money, and day-to-day habits? If you have teenagers, you may want to ask them for their opinion on naming a guardian.  Also, do not overlook your four-legged or feathered dependents - pet owners should also consider a plan for their animal companions in case of a prolonged hospital stay or death. Make sure these caregivers know the pattern of your everyday life in regards to your child(ren) and or pets: medications, allergies, schedule, and contact information for the organizations in their orbit (such as a school, day care, medical office, etc).

Now you have a blueprint for conversations that will elevate your estate plan.  It’s time to take action. Fall officially arrived in the Northern Hemisphere at 7:43am, Sun, Sep 22, 2024.  Here in Madison, Wisconsin, where I live, Mother Nature delivered a cold front with plenty of rain, wind, and cooler temperatures.  It’s the perfect time of year to pour a cup of hot coffee (or tea or cider) and start talking.  

Image by M. Gustafson Gervasi

Thank you for reading, and please share this article if you found it helpful.  You can also “Follow” my blog; enter your email by clicking Follow in the upper righthand corner to receive a message when a new piece is posted.  Remember that a blog is not legal advice. Rather, it is intended to spark thought and reflection.  Be well and thank you for reading. 

What's More Important Than an Estate Plan? The Act of Planning!

What's More Important Than an Estate Plan?  The Act of Planning!

By Melinda Gustafson Gervasi

September 16, 2024

OMG! Austin, in AUGUST! Are you both nuts???? My teenage son scoffed.

It will be hotter than Hades, this is crazy! Yelped my soon-to-be high school daughter. 

And so began our family discussion of driving from Madison, Wisconsin to Austin, Texas. In August!

It was early summer, and my husband and I had decided to chip away at our goal of taking our children to all 50 states. By Fall they would both be in high school.  The window for family vacations was narrowing. So I cooked up a route that would take us to 5 Presidential Libraries as well as towns with friends and family.  

My son, the elder of the two kids, realized this was not negotiable. We were going.  He is my realist and commented to his sister “well, they’ve made up their minds, we might as well look up good places to eat along the way!” 

And so it began; a 2500 mile road trip. We pulled out of Madison on July 31st with a plan:

• First stop - Iowa to see friends and visit the Hoover Presidential Library in West Branch, Iowa;
• Second stop – Kansas to see more friends and visit the Eisenhower Library in Abilene, Kansas;
• Third stop – Dallas to see family and visit both the George W. Bush and George HW Bush Libraries;
• Fourth stop - Austin, Texas to see the LBJ Presidential Library; and
• Fifth stop - Oklahoma City to see the Alfred P. Murrah Federal Building Memorial and the National Cowboy & Western Heritage Museum.

Backing out of our driveway with our vehicle packed with luggage and snacks, we reminded ourselves we have a plan that is subject to change.  Over the years our travels have included many mishaps forcing us to change plans due to illness, poor travel conditions, and vehicle troubles. 

Planning, it turns out, was also a topic of interest for our 34th President. On Day Two of our travels I found myself pausing in front of a poster in the Eisenhower Library.  “Plans are worthless, but planning is everything.” 

Image by M. Gustafson Gervasi, 2024

I was on vacation, yet my work mind instantly kicked into gear.  As an estate planning and probate attorney, the paradox created by Eisenhower’s quote caused me to pause and reflect on its meaning, and it has prompted others to write research papers on the apparent contradiction (click here for a link to one).  From my viewpoint an original plan may never happen due to constantly changing circumstances. However, there is great value in the planning itself.  Having a base plan allows for contingencies to come about more easily than if there had never been a plan.  Also,the process of planning helps us get our affairs in order to an extent better than if we had done nothing at all.

For those needing to create an estate plan, consider the following:

• Who do you want to make financial decisions for you if you are alive but too sick to act on your own?  If that person is unable to act, who is a good back-up?
• If you are unable to make your own health care decision, who in your circle of family and friends is best suited to speak for you?  Again, if that person is unable to act, who is a good alternative?
• Upon your death, who is the appropriate person to handle your burial and funeral?  Here in my home state of Wisconsin that automatically defaults to your next of kin.  For many people this default does not reflect their wishes about who will handle the arrangements.  Who would you name?
• After you have died, who is the best person to handle your final affairs?  In Wisconsin, the person who takes care of the probate is called the Personal Representative.  In other states the term is Executor.  This person will gather your assets, pay your final bills, sort through your possessions, file the taxes, and ultimately distribute your assets.  If the person you name is not able to act, who would you name second?  Would you name a person at all, or might you opt to bank a bank or other institution to perform these tasks?
• What should happen to the money and assets that you have left over after all the taxes, medical bills, funeral costs and other liabilities have been satisfied.  You may have an obvious answer, “my spouse” or my “children”.  However, life may not unwind as you predict.  What if you outlive your spouse and children?  Would you name a nonprofit or neighbor who has become your chosen family?  

Answering the Who and What questions is good.  Taking it another step or two out by asking what if they are no longer living will force you to create a plan that adapts to changing conditions.  

As for our road trip, no one got sick, we didn’t have car trouble, no venues were closed.  Our original plan unfolded and we visited all 5 Presidential Libraries as well as the friends and family along the way.  We ate well, learned a lot, and made some wonderful memories.  We are now settled into our school year schedules and routines.  Be well and safe travels for those heading out to see the Fall colors or check out foreign ports before the snow flies.

If you found this post helpful, consider sharing it with others.  You can also sign up (upper right hand corner) to receive an email for future posts.  Keep in mind that a blog is not legal advice.  It is meant to spark thought and reflection.  Be well and thank you for reading!

Artistic Cowboy, Bush Presidential Library

Joes BBQ - Kansas City, KS

Sign - Austin, Texas Food Truck Court

Images by M. Gustafson Gervasi, 2024

Lesson From Fisk, Season 2: Work Out Your Wishes Before Meeting the Attorney

Lesson From Fisk, Season 2: Work Out Your Wishes Before Meeting the Attorney

September 9, 2024

By Melinda Gustafson Gervasi

Season Two of the Australian comedy show Fisk ends with an all too frequent storyline -- the married couple that erupts into an argument as the attorney asks delicate questions about what happens when you die. In this episode Helen is working with a couple where there is a significant age difference, a baby from the union, and adult children from his prior relationship. As Helen asks questions the wife grows increasingly upset, objecting to the very notion that she might die.  It is clear she is at the meeting to prepare for her older husband to die. She goes beyond rattled by the mortality question into an entirely new level of upset, turning to social media and gottcha TV to turn her anger towards her attorney and away from the reality that death does not discriminate in favor of the young. 

My take-away from this episode is the importance for couples to discuss privately what will happen when one dies, when the other dies, etc.  Taking the "what if" question out a few layers helps reveal assumptions one holds but the other does not, or the process uncovers deep feelings about NOT giving certain family members any bequest.  After nearly two decades of writing wills I have witnessed firsthand the tension generated between couples who do not agree on a distribution plan.  Experiencing that is hard, and it is even harder when it unleashes in front of your attorney.

Remember that a blog is meant to spark thought and discussion; it is not legal advice.  Please consult an attorney in your home state for advice specific to your situation.  Thank you for reading.  If you find my posts helpful, considering sharing them on your social media.  Click above (upper right) to Follow this blog; enter your email, and receive a message when a new post goes live.