Klitzman Law Group, PLLC

Putting Your Home in a Trust

If you have decided to get a trust it often makes sense to put your big assets, such as your home, in the trust.

People who get living trusts always have questions about what kind of assets they should put in their trusts, especially whether or not to put their home in it.

Recently, FOX News discussed this in "Why Should I Put My Home in a Living Trust?"

To understand the answer to the question, it is important to understand the main purpose of most living trusts.

Most people who get living trusts do so to avoid having their estate go through probate after they pass away, which is necessary if someone passes away with or without a will.

Probate can be costly and time-consuming, especially when there is a dearth of practical information left behind regarding where the legal documents and assets are.

With a living trust people can use their assets while they are alive and then after they pass away those assets can be distributed to the beneficiaries of the trust without going through probate.

The trustee, not a probate court, is responsible for making sure everything is handled appropriately. It can be faster and cheaper. The most valuable asset for many people is their home, so it only makes sense to include that in the trust rather than having it go through probate.

Of course there are many other reasons to get a trust, such as for estate tax purposes. There are also many different types of trusts that can be used for other purposes.

If you would like to know more about living trusts and what you can do with one, talk to an estate planning attorney.

Reference: FOX News (October 5, 2016) "Why Should I Put My Home in a Living Trust?"

Suggested Key Words: Trust, Estate Plan, Will, Probate

You Are Not Done When You Get an Estate Plan

Getting a formal estate plan from an attorney is not the final step to prepare for your estate. Estate planning is a lifelong process.

If you have taken the important steps of going to an estate planning attorney, discussing your wishes for your estate, having the attorney craft your plans and executing those plans, congratulations. You have done what far too few Americans do and have planned for how your estate will be handled. You have taken the necessary steps to make sure that if anything happens to you, your loved ones will be taken care of according to your requests.

However, do not think you are done with everything forever.

It is extremely important that you update your estate plan when necessary as the Verde News discusses in "Updating Your Estate Plan: When You Should Review It."

It is impossible to list all of the possible times your estate plan should be updated.

Plans need to be changed whenever there are significant changes in circumstances. That can include changes in your financial situation, death of an important person in your estate plan, changes in estate law and much more.

Estate planning attorneys suggest that you review and change your plans anytime you experience a substantial change in life circumstances. It is also suggested that you review your estate plan every few years and talk to your estate planning attorney to make sure no laws effecting your plan have changed.

If it has been awhile since you have updated your estate plan, then call your attorney and schedule an appointment to have your plan reviewed.

Reference: Verde News (Oct. 29, 2016) "Updating Your Estate Plan: When You Should Review It."

Suggested Key Words: Estate Planning

Steps to Get an Estate Plan

Getting an estate plan often seems more difficult than it is. If you follow a few basic rules and steps, then you can get a good estate plan with little hassle.

Many people have the mistaken idea that getting an estate plan is an overly complicated process. They let this idea stop them from doing their own planning and they just keep putting things off.

However, estate planning does not have to be complicated.

Recently Personal Liberty offered some tips to simplify things in "Nuts and Bolts of Estate Planning," including:

• Organize all of your financial and asset documents so you know what you have and what you need to plan for.
• Make the important decisions about who you want to have your assets and how much everyone should get.
• Think about how your heirs might disagree and how any conflicts can be avoided.
• Your plan does not need to be perfect. You will not be able to create a plan that pleases everyone completely.
• Whenever possible keep your plans flexible so they are easy to change when circumstances change.
• Make sure you are choosing responsible people to act as your executor and trustees.
• Do not surprise your heirs with too much. If you are planning something unusual, it is a good idea to let them know.

An experienced estate planning attorney can help you avoid missteps.

Reference: Personal Liberty (Oct. 28, 2016) "Nuts and Bolts of Estate Planning."

Suggested Key Words: Estate Planning

 

When a Family Member Dies

If you have never had to deal with a close family member passing away, then you might not know that there are important things that you need to do to make sure everything goes smoothly.

Dealing with the death of a close family member can be a trying experience, especially if it is the first time you are the responsible adult in charge of making sure everything is done properly. You not only have to deal with your own grief, but you also must make sure the deceased's affairs are in order.

This is tough for even the most meticulous people as the Cape May County Herald discusses in "What to Do When a Family Member or Loved One Dies."

Some things you need to do are just common sense. For example, you must make sure everything is safe and secure at the home, that any pets are taken care of and that any perishable food items are cleaned out of the refrigerator and pantry.

You should also take some financial steps.

It is important that you log any expenses you have while dealing with the clean up so you can be reimbursed from the estate. You should also be certain to locate any credit cards or check books to make sure they are secure. It is illegal for you or anyone else to use the cards or checks, so destroy them.

The most important thing you need to do when a loved one passes away is to call an attorney. If you know the family member used a specific estate planning attorney, then call him or her to ask about important documents. Otherwise, call an estate attorney to learn about your legal obligations.

Reference: Cape May County Herald (Oct. 31, 2016) "What to Do When a Family Member or Loved One Dies."

Suggested Key Words: Estate Planning Attorney

Convincing Parents to Create Estate Plan

Many children with aging parents know that their parents should do estate planning, but convincing their parents of that can be difficult.

Many elderly people in the U.S. believe estate planning is something only the very wealthy need. If they only have a few major assets and modest back accounts, then they believe estate planning is unnecessary for them.

Many of their adult children know better, however.

The children know estate planning is an important responsibility for everyone regardless of wealth. While those children would like to talk their parents into estate planning they may find it difficult.

This topic was addressed by NJ 101.5 in "Talking to your parents about a will."

If you find yourself having this problem with your aging parents, there are some steps you can take.

First, explain to your parents that without an estate plan their estates will have to go through probate and everything will be distributed according to state law and not your parents' wishes. That means if they would like to leave something directly to their grandchildren, they will not be able to do so in most cases.

You can also talk to your parents about how costly and time-consuming probate can be and how it could be a burden on the family.

If all else fails and you can afford it, you might offer to pay for your parents to visit an estate planning attorney. They do not have to commit to anything before seeing the attorney, but the attorney can discuss the benefits of estate planning with your parents and give them some options.

Reference: NJ 101.5 (Nov. 1, 2016) "Talking to your parents about a will."

Suggested Key Words: Estate Planning

 

Using a Pour Over Will to Fund a Trust

When you get a living trust from an estate planning attorney you will likely also get a pour over will that is designed to bequeath any assets you have when you pass away into your trust. It is important not to rely on that will as the sole means of funding your trust.

Getting a trust to avoid having your estate go through probate is only effective if you fund the trust. That means your assets need to be transferred into the trust. Any assets held in the trust when you pass away will then be used and distributed according to the terms of the trust instead of having to go through probate.

At the same time, you will also likely get a pour over will.

These are simple wills that dictate that any assets you had at the time of death that are not in the trust should be placed into it via probate.

Do not let that fool you into thinking you do not need to transfer assets to the trust now and just rely on your will as the Green Bay Press-Gazette points out in "Estate Planner: Importance of funding your trust."

While the exact rules vary from state to state, it does not take a lot of assets to require an estate to go through probate.

If all of your assets remain outside of your trust, then your executor has to probate your pour over will. By relying on the will you would have essentially defeated the purpose of getting the living trust in the first place.

If you do not know how to transfer assets into your trust or need assistance doing so, then talk to your estate planning attorney to get more information about what you need to do.

Reference: Green Bay Press Gazette (Oct. 31, 2016) "Estate Planner: Importance of funding your trust."

Suggested Key Words: Trust, Will

Is Death Better than Watching the Debates?

Many Americans can probably relate to retired trucker George Norman Davis who said he would rather die than watch the Presidential debates.

George Norman Davis was a retired veteran and long-haul trucker. While not famous in life, his obituary is giving him some fame on the Internet.

It tells how, on the day of the first Presidential debate between Hillary Clinton and Donald Trump, Davis proclaimed that he would rather die than watch the debate and promptly did so.

The Daily Mail reported this story in "He said he'd rather die than watch the debates... and he kept his word! Hilarious obituary of Pennsylvania trucker who worried 'the nation is going someplace in a handbasket'."

Everyone who watched any of the debates can probably relate to the sentiment. However, while there is humor in this particular story, it is also an indication of a trend. More and more people are using public obituaries to express the kind of personality and humor of their loved one.

More and more people are also writing their own obituaries and telling the tales about themselves they want to tell.

The Internet allows people all over the world to discover these obituaries and to share those they find interesting. That does mean people who would like a more traditional or private obituary need to make their wishes clear in a will or by letting their families know in another way.

Reference: Daily Mail (Oct. 20, 2016) "He said he'd rather die than watch the debates... and he kept his word! Hilarious obituary of Pennsylvania trucker who worried 'the nation is going someplace in a handbasket'."

Suggested Key Words: Elder Law, Obituary, Will

 

Do Not Bury Dad in the Yard

Two women in Florida have confessed that they improperly disposed of their father's body five years ago.

Fairly or not, the state of Florida has a reputation for weird news. One of the latest stories to come out of the state is not going to do this reputation any good.

The details are sparse, but two women have confessed to authorities that they buried their 94-year-old father in his yard five years ago. The man had previously been reported missing by his brother.

Law enforcement discovered the body after receiving a tip that body was buried at the house. The sisters claim they found their father dead in the house, panicked and buried him according to FOX News in "Officials: Daughters confess to burying father, 94, in yard."

The sisters have been referred to the state's attorney general's office for investigation of possible crimes of which there could be several, such as improperly disposing of human remains.

Various financial crimes are also a possibility if they used their father's bank accounts or if he was receiving Social Security benefits they used.

It is not clear why the sisters panicked and did not call authorities when they discovered their father had passed away, but it obviously raises suspicion.

Needless to say, if you find a family member has passed away, do not bury the body. Call authorities. Not doing so is against the law and could almost be considered elder abuse.

Reference: FOX News (Oct.21, 2016) "Officials: Daughters confess to burying father, 94, in yard."

Suggested Key Words: Social Security, Elder Abuse

Tupac's Pendant for Sale

If you would like to purchase a pendant that Tupac Shakur was wearing when he was shot, you can. You might get sued though.

The deceased rapper Tupac Shakur remains one of the biggest stars of the music genre years after his death. Fans still cannot get enough of his music, but his personal items have not been nearly as accessible to interested collectors.

A single piece of memorabilia has now appeared.

According to TMZ in "Tupac Bullet-Dented Pendant. . . Up For Grabs For $125K," a bullet-dented pendant the rapper was wearing when he was shot in New York City two years before his death is up for sale at a fixed price of $125,000

The pendant was allegedly given to a memorabilia dealer for the sale by an unnamed family member. It is not certain why it is a sale for a fixed price when most high value celebrity memorabilia is put up for auction.

What does seem clear is that this sale is very much a buyer beware situation.

Tupac's estate has declared that no one, including family, has been authorized to sell any merchandise. The estate has threatened to sue anyone who sells or buys the pendant.

Until more details come out, it cannot be determined whether the estate has the right to block the sale of this pendant.

If the family member who gave it to the dealer was given the pendant as part of the estate, then it is not clear what grounds the estate has to sue on. However, if the pendant was improperly acquired, then the estate has a much better case.

Reference: TMZ (Oct. 16, 2016) "Tupac Bullet-Dented Pendant. . . Up For Grabs For $125K."

Suggested Key Words: Estate Sale, Estate Litigation

 

Is an Inheritance the Same Thing as Love?

Parents who are considering leaving their children unequal inheritances often struggle with the notion that those children will believe they are not loved equally as a result.

Parents have many good reasons for wanting to leave one child a larger inheritance than another child. The most common reasons are that one child needs the money more or that one child has been given more financial support than the other previously.

Recently, Washington Post columnist Michelle Singletary discussed these reasons and others in an article. She receive some pushback from readers, which she discusses in another column reprinted in the Ventura County Star as "Michelle Singletary: Will does not equal parental love."

Singletary's readers pointed out that children who receive a lesser inheritance than others often come to believe that means their parents loved them less or that they have done something wrong.

Sometimes the unequal inheritances even lead to bitter family disputes.

Singletary responds with a plea to those who inherit less. She encourages them not to assume they were loved less by their parents, but to consider the valid reasons for inequality.

While that debate is interesting, there is another thing that needs to be pointed out. A lot of the problems unequal inheritances cause can be avoided. Parents can discuss their estate plans with their children before they pass away and let the children know why there is a disparity.

Consult a qualified estate planning attorney to help you through this delicate process.

Reference: Ventura County Star (Oct. 12, 2016) "Michelle Singletary: Will does not equal parental love."

Suggested Key Words: Estate Plan, Inheritance