What Does "Estate Planning" Mean?

What Does "Estate Planning" Mean?

By Melinda Gustafson Gervasi

March 3, 2021

Mystified may be the word many people opt to describe how they feel when they hear the phrase "Estate Planning".  For many the phrase evokes images of expensive lawyers sitting behind mahogany desks  serving clients with a seven-figure net worth.  When a person cannot insert themselves into that image, they dismiss "estate planning" for the wealthy and move on to the next item on their perpetual to-do lists.  Sadly, this is not true and learning the reality of estate planning can be a rude awakening when life reels up and places you or a loved one in the Emergency Room on a random Friday morning.  Estate planning is for everyone over age 18.

Estate planning boils down to three things, planning for: illness, death and taxes.  The documents that comprise your estate plan may look very different than  the plans of America's Top 2%, but they will address illness, death, and in some cases taxes.  An estate plan is basically a process by which you take control and make decisions about who has the authority to act (either if you are alive and too sick to act or at death) and where assets will pass upon your death.  These decisions must follow the laws of your state of residence.  Common types of documents that make-up an estate plan include: will, power of attorney for finance, power of attorney for health care, and in some cases a trust (of which there are dozens of different types).

The United States is comprised of 50 different states, and each has its own set of laws related to estate planning.  Terminology, requirements and responsibilities vary across state lines. It is essential you learn about the laws of your state and how they impact your situation.  Ideally a lawyer would assist you in that process.  A blog post is not a lawyer nor does it provide legal advice.  It is meant to get you thinking and talking about important topics.

Being overwhelmed by all that goes into an estate plan, many people are tempted to leave the project for another day.  I urge you to keep moving forward.  Start by educating yourself about the basics in your state.  Caution: many of those free lectures on how to avoid probate AND get a free fish diner are nothing more than scams run by sales people who are not licensed attorneys.  My personal preference is to find an attorney focused on the area of estate planning who also emphasizes education during your work together.

Thanks for reading.  If you are up for a video, you can view a recent Estate Planning 101 seminar I gave in a virtual format at the end of 2020.  It is educational, and does not provide legal advice.

Will Safekeeping - Dane County, Wisconsin

Will Safekeeping

Your Compass Series

By Melinda Gustafson Gervasi

February 22, 2021

Image by M. Gustafson Gervasi, 2021

Creating an estate plan is one thing, maintaining one is a completely different issue. Recent news stories indicate that fewer than 35% of Americans have an estate plan.  Entering this group deserves a pat on the back, well done!  If you can, muster the focus and energy to go further and to maintain your plan.  An estate plan that is out of date or cannot be found is not much of an estate plan. From that concept grew my new series, Your Compass, where I will explore what it means to manage your estate plan once the ink is dry.

Where is the dang will?  After fifteen years of working with estate planning and probate clients I can tell you a fact.  People lose their wills:

• accidentally shredded;
• misfiled and found years after it was needed;
• dementia takes the memory of where it was kept;
• it was packed with "important stuff" prior to the move, but cannot be found once settled in.

Not finding your will can result in not having a will -- courts may require an original.  So keep it safe!  But what is the best way?  Personally I find safe deposit boxes to be problematic.  Too often the document that says who can get into the box after your death is inside the box....and banks are growing more and more protective in efforts to secure their clients information.

Where does this attorney keep her will you may wonder?  Answer, it's on file with the Dane County Probate Court for Safekeeping.  There is a one-time $10 fee per will.  It is given a case number and filed for safekeeping in a space that has far superior fire and water protection than I could ever provide in my home.  Not a Dane County or Wisconsin resident?  Find out if your county courthouse offers a similar service, but make sure it is a quality service.  Not all court record systems are equal.

As for today, here is the process to file your will for safekeeping with the Dane County Probate Court:

• Your ORIGINAL WILL is filed with the court.  Making a copy of your will for your records is an excellent idea; stamp it COPY and note where the original is filed;
• Put the original will in a #10 business envelop with your name, address, and DOB printed very clearly on the front.  Seal the envelope;
• Create a self-addressed, stamped envelope to yourself.  This allows the court to mail you the receipt for placing your will for safekeeping.  Keep the receipt with your copy of the will and other estate planning documents;
• Call the court to confirm they are open and accepting will drop offs (for several months in 2020 the court was not open for this service) and that make sure the fee remains $10 (check).  The phone number is 608-266-4331.  It is located at 215 South Hamilton St., #1005 (to your left after you pass through security), Madison, 53703.

Thanks for reading!  Sign up for new blog posts alerts to stay on top of your estate plan.  Remember, a blog is not legal advice nor does it take the place of an attorney.  It is meant for thought and discussion.  Please consult a licensed attorney in our area for advice specific to your situation. 

At the Heart of Estate Planning: Where can you do the greatest good if tragedy strikes

 

At the Heart of Estate Planning: Where can you do the greatest good if tragedy strikes

By Melinda Gustafson Gervasi

February 5, 2021

Lawyers ask a lot of questions when counseling clients.  In my estate planning practice a typical sequence of questions when developing an estate plan sounds like this:

Me:  When you die, where do you want your probate assets to go?

Client:   To my spouse.

Me:  And what if your spouse has predeceased you?

Client:  Oh, well to my children equally.

Me:  And if a child had predeceased you, would his/her share go to any child(ren) he or she may have had.

Client.  Umm, well....yes, yes that makes sense.

Me:  Okay, this is the last one, but if the unthinkable happened and you had no surviving children or grandchildren, what would happen then?

Client:  Wow, I never thought of that before.

One of my favorite things about working with clients is when they surprise me and give me tools to use with other clients in the future.  Years ago I walked through the questions above with a client.  The clients was a medical professional with a spouse and four adult children.  The client, unfazed by my questions due to their scientific career and daily work with dying clients said, "well, if I am on a plane that is going down with my spouse and children I want something good to come from that tragedy".  The client then listed 4 nonprofits that would inherit in the unlikely, and unthinkable scenario.  The client felt the 4 organizations captured their families values and would have the most positive impact in the world.

Ever since, when a client gets to the "wow, I never thought about that" question I encourage them to think about where their money would do the greatest good and support their values.  Most need a few days to consider options, but using the structure of "where the money will do the greatest good" makes the thought process a bit more tolerable. 

Thank you for reading.  A blog post is meant to spark thought and discussion, but it is not legal advice.  Please consult with an attorney in your state of residence for legal advice specific to your situation.

Talking to Children About Death -- What I've Been Reading

Talking to Children About Death -- What I've Been Reading 

By Melinda Gustafson Gervasi

January 8, 2021

Grief during the current pandemic is unlike anything most of us have experienced during our lifetimes. Gathering, hugs, sharing a meal are not recommended. Instead Zoom Memorial Services or limited attendance at the grave site puts a twist on our grieving process. In the middle of it all, we are raising children. Inevitably the adults will need to talk about death and dying. This past year I was introduced to two different illustrated children's books that may smooth the path for discussing the path of a loved one with young children.

Badger's Parting Gifts by Susan Varley was introduced to me by the Rev. Kelly Crocker of the First Unitarian Society of Madison last Memorial Day weekend. Discussing death with children is never an easy duty, but it will be with us forever. In Badger's Parting Gifts the readers meet Badger, who is quite old, tired, and ready to go down the "long tunnel". After his passing, the woodland friends he left behind found comfort in the memories each had from an experience gift Badger had gave them during his life: how to tie a tie; how to bake gingerbread cookies; and how to ice skate. Badger's Parting Gifts also has a message for the adult reader -- the shared experiences you leave behind with young people will remain alive after your earthly presence has ended. The book is simple, straightforward, and secular.

More recently, I received an email from a northern Wisconsin librarian who suggested I read Home in the Woods by Eliza Wheeler. It is now part of our home library collection. Home in the Woods gives voice to a young child during the Great Depression who moves to a shack in the north woods of Wisconsin following her father's death. Based on a true story, the book is structured by the four seasons. With each passing season the child grows and heals from new experiences and the earth's renewal. This book may be helpful for a child who has experienced the death of a parent and subsequent changes in their life. I would have liked to see 2 or 3 more statements connecting the natural renewal depicted to the child's grief process. An added bonus to this book is the glimpse it offers into life during the Great Depression.

One of my "to-read" stacks of books.
M. Gustafson Gervasi, 2021

From The Headlines: Famous Actors Die Without a Will

From the Headlines: Famous Actors Die Without a Will

By Melinda Gustafson Gervasi

December 29, 2020

The year 2020 stoked our awareness of immortality.  The entire world became painfully aware that even the young, strong and healthy could fall victim to Coivd-19.  Yet, while there was a spike for estate planning services, 62 percent of Americans still do not have a will.  And it is not just the average American without these essential documents; the wealthy and famous are members of this group of procrastinators.  

At age 43, Chadwick Boseman (most recently known for his role as The Black Panther) died after a several year battle with cancer.  He died without an estate plan.  Then on November 27, 2020, Tony Hsieh (age 46) died due to smoke inhalation.  He also died far too young, and without an estate plan.

Intestate, when you die without a will, means that state legislation and a judge's oversight will dictate where your probate property will go.  Probate property is anything you own with no co-owner or named beneficiary.  Not creating a plan is likely not caused by a lack of resources, even Prince, who died in 2016, who took extreme legal measures to protect his music died with no estate plan.

So why the lack of action?

• believing you are too young to die
• thinking you'll dodge death by not planning for it
• avoiding the unpleasant topic of your demise
• having no clue where to even start wrapping your mind around the topic

Does the reason for avoidance really matter?  The point is, make a plan and take control.  Read more about the artists mentioned here and you'll uncover a trove of information about excessive taxes, family infighting, and wishes that never materialized.  As we welcome the New Year, consider where the proper place on your To-Do-List the task "create (or update) an estate plan" should fall.

Thanks for reading.  Remember that a blog is not legal advice; it is meant to spark thought and discussion.  Always seek legal counsel from an attorney licensed in your state of residence for advice specific to your situation.  Best wishes for 2021.

A North Star in Estate Planning

 A North Star in Estate Planning

December 24, 2020

By Melinda Gustafson Gervasi

Estate planning attorneys spend a lot of time listening to their clients, or at least they should.  I use a flat-fee system with my estate planning clients. Doing so gives them the freedom to talk without one eye on the clock, fearful of the almighty billable hour.  And talk they do.  Telling one story here, expressing a concern there, circling back to a fact they overlooked.  During our first meeting to talk I have a completed client questionnaire, but the conversation breathes much more life into the clients wishes than a few sheets of paper.

Quite often a client will open up to me which allows me to see that the client has several priorities.  This can be problematic.  Priority, defined means one thing is more important than other things.  When you have multiple priorities in estate planning the path to final documents can be convoluted, overwhelming, and sometimes impassable. When this situation develops in a meeting I mention the role of a North Star.

The North Star, also known as Polaris, has been used as a navigational tool since antiquity.  It is said that when you locate the North Star, you know where you are headed.  Finding your "North Star" when doing an estate plan forces you to isolate what is most important, and guide you towards that point.

From "simplicity" to "dead hand control" to "tax efficiency" there are many motivators behind a client updating or creating an estate plan.  From my side of the desk, narrowing the focus to one top priority often allows a plan to unfold neatly for a client.  This may be the difference between a client growing frustrated and giving up and a client smoothly sailing to a final meeting to sign an estate plan.

Thank you for reading.  A blog is meant to spark conversation, and should not be taken as legal advice.  Please work with a licensed attorney in your area for advice specific to your situation.

It's The House With The Creepy Santa -- Estate planning during a pandemic

 It's The House With The Creepy Santa -- Estate planning during a pandemic

December 18, 2020

By Melinda Gustafson Gervasi

Pivot.  It may be "the word" of 2020.  And pivot we did.  Being and estate planning and probate attorney during a global pandemic has been challenging, rewarding, and ever changing.  When I started my practice in 2005, I never imagined that in my 15th year of solo practice I would be holding client meetings outdoors at my home office with my spouse as the witness.  Yet, that has become a reality.  I pivoted away from a conference room, offers of fresh coffee, witnessing by my administrative staff, and closing with a Frango Mint to go.  Instead I now commonly say ".....go North on Whitney Way through the intersection of Whitney and Mineral Point Rd., then make a U-turn at Marathon.  Go about 10 houses South on Whitney.  Our house is the white ranch with a yellow front door and a creepy 1980s (possibly older) plastic Santa Claus."  This is how I currently give directions to clients with in-person meetings.  

Back at Thanksgiving when we put up our holiday lights I forgot that our front yard had become my alfresco office, so appropriately coined by a client who visited in last Summer.  We have a simple display.  Green lights around the front and garage door as well as our Little Free Library.  There is a Rudolph spinning in the wind while he rides a bike.  It was a nod towards my husband's commitment to commuting via bike.  And then there was Santa.  Standing nearly 5 feet tall he is made of that hard, indestructible plastic of my childhood.  I cannot remember a year without this Santa standing in my parents' front yard.  When both of them had passed and I emptied their home, Santa stayed with me rather than being donated.  Santa was not really my style, but he was my parents.  

My children, now 12 and 10, have little to no memory of my parents who died in 2009 and 2014, but they know this Santa was Grandma and Grandpas.  And they LOVE it despite the crack in one arm and the fact you need to prop him up with a garden stake or he will fall and possibly blow down the road. 

When a home is cleared out as the result of a move or a death, I urge you to pause for a moment or two and ask "what here captures the spirit of [insert name of your loved one]?"  In retrospect I may have tossed, donated or recycled too much of my parents' personal items.  It was a massive job following 10 years of their declining health, and I was stressed.  I wanted it to be done.  Knowing what I know now, you may want to consider:

• look around your home and make gifts out of family heirlooms, keepsakes, and special items;
• determine what items capture family tradition - dishes, cookie cutters, table coverings, etc. and make plans about who those should go to when you are done with them;
• note the story behind the item -- I bought this necklace during our trip to Iceland; this was my great-grandmother's needle point, you gave this to me as a mother's day gift when you were in Kindergarten.  

Creepy Santa, as he has become to be called, will continue to have a place in our holiday decorations for years to come. He does not fit into the "classic" holiday decorations that adorn so many houses in our area.  While those may be stunning, they could easily be any house in any holiday magazine.  Our abode is unique and easy to spot thanks to Creepy Santa.

Best wishes for a safe and peaceful winter holiday season.

Thank you for reading.  Remember that a blog aims to spark conversation and should not be taken for legal advice.  Please consult a licensed attorney in your home state for advice specific to your situation.