When Considering Co-Trustees

An estate planning attorney opens her conference room door. She finds an older gentleman sitting at the table, pleading with his two adult sons to settle down as to not embarrass him. It is unclear why the sons are arguing but they are.
Tempers simmer; the brothers realize the attorney is present.
The father tells the attorney he is in need of a trust agreement. He plans to make his sons co-trustees; both appointed with equal power and obligation to administrate dad’s estate once he dies or becomes incapacitated.
The eldest son makes a joke under his breath, implying because of his age, he will somehow have more authority than his kid brother. The younger brother isn’t amused and tells him so. Moments later they are engaged in another heated argument; both now oblivious to the attorney and father.
The attorney leans close to the father, lowering her voice to prevent the children from hearing. She asks if the siblings are close. The father admits they are not. – The attorney asks if they argue often. The father says it seems to happen whenever they are in the same room and so they avoid one another. – The attorney asks if the father is certain he wants his sons to serve as co-trustees. The father says yes, adding, ‘once I’m gone they will have to get along.’
Sadly for the father depicted in this illustration, sibling rivalries seldom fade with the death of a loved one. To the contrary, rivalries usually worsen when coupled with grief; even if both siblings are responsible, trust worthy, and honest.
It is best to consider and avoid potential conflict when choosing a trustee. A great many people choose family members or friends to serve. Others turn to fiduciaries to make decisions for beneficiaries. Ultimately however, it is your decision as to who will make the best choices in your absence; so please choose wisely.
For more information about wills, trusts or other estate planning documents, please contact a qualified estate planning attorney.

Trusts Prevent Reckless Spending

Have you ever given thought about how your heirs will manage their inheritance when you’re gone?

How many times have we heard parents say of their children, “we don’t have to worry about this child but the other child is a spender?

Having a conversation with your children about money, your wishes for them when you’re gone, and your estate planning should help heirs make better monetary decisions. Still, there is no guarantee that “this” child won’t spend through his or her inheritance faster than “the other” child (especially if he or she isn’t used to having large sums of money).
Years ago, a member of our staff and his wife put their names in for tickets to appear on a Television game show. Like most people they pondered ‘what if?’ What would they do with the money if they won?
After careful consideration they agreed the winnings would go into their savings.
As fate had it, the staffer’s wife won a “cash prize” in the thousands. Instead of putting all or most of the money in savings as planned, they vacationed in Hawaii.
Most people who come into large sums of money tend to spend much of it regardless of whether the money came from winning a game show, a tax return, or inheritance.
Savvy estate planners appreciate that the trust agreement is the key legal document for people concerned about their heirs or beneficiaries spending recklessly, or making poor investment decisions.
Trusts have the potential to protect your heir’s inheritance by controlling what distributions are made, and if necessary, delaying the distributions over a number of years.
In addition, trust agreements reduce estate tax liability for beneficiaries and help them avoid probate. Meaning, it is a great handy dandy legal tool, even if you aren’t worried about your heirs spending recklessly.
For more information about wills, trusts or other estate planning documents, please contact a qualified estate planning attorney.

Planning In Case of Dementia

As we age, we all become more susceptible to lapses in memory. It’s very common to walk into a room and forget why; or to wait your turn in a conversation, only to discover you forgot what you were planning to say. When these things occur, many people become concerned they may be “losing it,” or are perhaps experiencing symptoms of dementia.

With approximately seven and a half million people diagnosed daily, it is easy to understand why people might be concerned.

The good news is if you realize you are experiencing a memory lapse, more than likely, you do not have dementia.

Most, if not all people experience an occasional lapse in memory. Dementia on the other hand isn’t occasional. It is persistent.

Often confused with Alzheimer’s, which is a disease (and the most common cause of dementia), dementia itself is a disorder caused by the destruction of brain cells – usually resulting in memory loss and/or a loss of reasoning. The result of which, is a decline in the ability to perform regular day to day activities such as dressing one’s self, bathing, or eating.

A person with dementia might for example …
Ask a question – re-ask the question, ask again, and never remember having asked in the first place.

They may get lost in their own neighborhood, on their own street.

They sometimes put things in the wrong place, like placing their toaster in the freezer – or they experience severe mood swings, going from calm to sad to anger in minutes.

A great many suffer loss of initiative and become passive, to the point of not wanting to go places or see people.

Even worse, most cases of dementia are incurable or irreversible. Still, there are exceptions, but they exist on matters where the symptoms are caused by thyroid problems or vitamin deficiencies.

As for estate planning … A qualified estate planning attorney can draft a power of attorney (medical and/or financial), to name an agent for the person expected to experience dementia as long as the person needing power of attorney has capacity at the time of planning. If they do not, the best an estate planning attorney can do is assist by helping an agent gain conservatorship over the person.

For more information about power of attorneys, conservatorships or other estate planning documents; please schedule an appointment with a qualified estate planning attorney.

We have all dabbled with a do-it-yourself project at one time or another. When successful, a good do-it-yourself project can save money and boost self esteem. When unsuccessful, it provides an opportunity (if so desired), to learn from one’s mistakes and try again.

But not all projects are created equally. When it comes to estate planning, there isn’t always room for a second chance. And the cost of not getting it right the first time might be greater than you think …

In 2007, a woman named Katherine Webster attempted to help her uncle create an estate plan, the result of which was Katherine filing a lawsuit against LegalZoom (one of the biggest on-line providers of do-it-yourself legal documents in the nation).

Katherine’s uncle had been sick and was concerned about his health. He wanted to make certain his estate was in order. Katherine agreed to work as his agent and assist him in this endeavor. Using documents provided by LegalZoom, Katherine’s uncle completed his estate plan (including a trust and financial power of attorney). When Katherine (acting as agent) attempted to transfer her uncle’s assets into the trust, she learned the documents were not properly prepared, and thus the financial institution rejected them.

Consequently, Katherine and her uncle contacted LegalZoom’s customer service department. However, customer service was unable to provide much assistance, as they were not licensed attorneys and therefore unable by law to provide legal advice.

Katherine’s uncle died in November of the same year. His estate remained unsettled. His attempt at do-it-yourself estate planning cost his estate thousands of dollars, and required the hiring of an attorney to straighten out issues with the financial institution.

The good news…

After more than two years, the matter of Katherine’s lawsuit came to a close and a settlement was reached.

The bad news…

Katherine’s uncle never received the peace of mind of knowing everything would work out, which is part of what an estate plan provides.

For questions on wills, trusts, or other estate planning options, please contact a qualified estate planning attorney.