Klitzman Law Group, PLLC

Electronic Wills are around the Corner

Almost all business can now be conducted electronically. Wills are one of the last holdouts, but that is starting to change.

Traditionally, for a will to be accepted as valid in probate court, it had to follow very strict forms and procedures. It needed to be signed and there needed to be witnesses present who could testify that the will was signed. Normally, two witnesses were needed.

Eventually, some states relaxed the strict formalities and allowed other wills to be probated, if it could be proven that the contents of the will were the intentions of the testator. However, some states kept the very strict rules.

That makes it difficult for wills to be made digitally, like most everything else can be today.

The law is now beginning to adapt in ways that will make them possible, as the New Jersey Law Journal discusses in "Electronic Wills: No Longer in A Galaxy Far, Far Away."

In 2013, an electronic will was accepted into probate in Ohio. In that case, the person had digitally signed the will using a stylus and witnesses were present to the signing.

While Florida recently rejected an electronic wills law, Nevada has passed a law that allows them.

In other states, courts are rewriting the rules to allow more non-conforming wills to be accepted, which will eventually pave the way for electronic wills in those states.

For now, you probably do still need to make sure that your will is written on paper and that all of the formal procedures are followed correctly.

That might not be true in a decade.

Reference: New Jersey Law Journal (Sep. 11, 2017) "Electronic Wills: No Longer in A Galaxy Far, Far Away."

Suggested Key Words: Wills

Spousal Election

A surviving spouse has the right to an inheritance, in almost all circumstances.

Most people do not want to cut their spouses out of their estate plan. However, there are some people who have built up a lifetime's worth of grievances, have not gotten a divorce and who do try to disinherit their spouses.

This used to be a much bigger problem, when divorces were more difficult to obtain.  However, the issue still persists today.

Fortunately, for surviving spouses, people are not allowed to merely disinherit their spouses.

It is not a simple matter though, as the Times Herald-Record discusses in "A spouse's inheritance rights no simple matter."

The details vary by state, but a surviving spouse has the right to make what is known as a "spousal election." This allows a spouse to elect to receive whatever is or is not given to her in the estate plan or to receive a certain percentage of the total assets of the estate. Commonly, this election is for between one-third and one-half in most states.

The reason for the rule is that people felt there was a duty to care for one's own spouse and that it would be wrong to leave a widow destitute.

There are ways around the law, if the spouses have entered a pre-nuptial agreement, but they are not ironclad.

If you need help navigating the rules of spousal elections in your state, then schedule an appointment with an estate planning attorney who can assist you and make sure your estate plan leaves enough for your spouse.  You can also learn how to take the election, if you are a surviving spouse.

Reference: Times Herald-Record (Aug. 31, 2017) "A spouse's inheritance rights no simple matter."

Suggested Key Words: Estate Planning, Spousal Election

Considerations for Elderly Widows

Many elderly women are not fully prepared for what might happen after their spouses pass away.

We live in an age where, at least on a legal level, men and women are treated equally. Women can now enjoy a far greater range of possibilities than their ancestors would have ever imagined.

However, just because the law says one thing, does not mean that each individual woman fully enjoys its advantages.

Even today, many women defer family finances to their husbands.

This is especially true for older women, which can leave the women  poorly prepared to handle things after their husbands pass away, as The New York Times discusses in "Helping Women Over 50 Face Their Financial Fears."

The biggest thing for most women, is that they need to know how to manage the day-to-day finances. They need to learn how much money there is, what bills need to be paid and how any money should be invested.

Some widows also have problems in that their husbands own a business that they inherit and do not know how to run.

The best way to deal with these problems is to avoid them, if at all possible.

Husbands and wives should discuss things to make sure the wife is prepared, in case the husband passes away.

Other widows have legal problems,  since their stepchildren might seek to challenge the widows' inheritances in court. These problems need to be addressed with the help of an experienced estate attorney.

Reference: New York Times (Sep. 1, 2017) "Helping Women Over 50 Face Their Financial Fears."

Suggested Key Words: Elder Issues, Estate Planning, Estate Attorney

Hidden Benefit to Physician-Assisted Death Law

California's new law to allow physician-assisted death continues to be controversial, but doctors are starting to see a hidden benefit to the law.

The recently enacted law that allows terminally ill patients in California to request lethal prescription medicine from their doctors, has caused a lot of controversy in the state and throughout the country. People are watching closely to see what effects the law will have, which patients will use it and what it will mean for doctors.

What happens in California will be cited by advocates in other states as they work to get similar laws passed or as they look to prevent similar laws from passing in their states.

The Los Angeles Times recently reported on one unexpected benefit of the law in "There's an unforeseen benefit to California's physician-assisted death law."

One thing the law does, is force physicians to talk to their patients about why they want to end their own lives.

That often leads to discussion about pain, quality of care and what the patient would prefer happen.

What doctors have found is that some of the assumptions they make about what is good for patients are inaccurate.

The patients would prefer that they be treated differently at the end of their lives.

Doctors and other health workers can use that information to better treat the patient.

Even if the individual patient still prefers to end his or her own life, the information can be used to improve treatment for other people.

Although it was not intended to do so, California's law has led to better quality care for all of the state's terminally ill patients. That is to be welcomed.

Reference: Los Angeles Times (Aug. 21, 2017) "There's an unforeseen benefit to California's physician-assisted death law."

Suggested Key Words: Elder Issues, Elder Law

A Large Bequest for Two Cats

A woman in New York left a large sum of money for her cats in her will.

It is becoming fashionable for wealthy people to leave large inheritances for the care of their pets, after the owner passes away. Every few months, another story makes the rounds in the media.

The latest incident comes out of New York, where a widow named Ellen Frey-Wouters left $300,000 for her cats.  She instructed that the money be used so the two cats, Troy and Tiger, would never be caged and would always receive good care.

Fox News reported on the story in "New York widow leaves $300G to her cats."

While there is an obvious tabloid appeal to stories of wealthy people leaving lavish gifts for their pets, there is a very serious side to these stories as well.

More and more people are viewing their pets as something more than mere animals they possess. Pets offer companionship and many people view them with as much love as they do human family members.

This leads to the desire to make sure that pets are taken care of, after the owner passes away.

You do not have to be wealthy to leave something behind for the care of your pets.

Estate planning attorneys can draw up plans for just about anyone to leave some money and instructions for how their pets should be treated.

It can be done through wills or through specially designed pet trusts.

See an estate planning attorney to ask about what you can do for your pets.

Reference: Fox News (Aug. 22, 2017) "New York widow leaves $300G to her cats."

Suggested Key Words: Estate Planning, Will, Pet Trust

Social Security Reform Unlikely Soon

Everyone in Washington knows that Social Security needs to be reformed.  However, that reform is unlikely to come anytime soon.

The future for Social Security is inevitable.

If nothing is done, then sometime in the 2030s the Social Security Trust Fund will run out of money.

That does not mean that retired people will stop receiving benefits, but it does mean there will be automatic benefit cuts as the program will only be able to pay out as much as it is then receiving.

This eventuality has been known for several years now. Most people would like to fix it sooner rather than later.

However, reforms to Social Security are not expected soon, as Forbes discusses in "When Can You Expect Social Security Reform?"

The problem is that the Republicans and Democrats are very far apart on how they would like to fix the program.

Republicans would like to raise the retirement age as part of any fix. Many of them would also like to privatize the program.

Both of those ideas are staunchly opposed by Democrats, who would instead like to find further funding, so Social Security benefits can be increased.

This stalemate is not going to end in the near future.

That means it is unlikely the parties will compromise to come up with a fix.

Do not expect them to do so, until the very last minute when a compromise must be reached or benefits will be cut automatically.

Reference: Forbes (August 29, 2017) "When Can You Expect Social Security Reform?"

Suggested Key Words: Elder Issues, Social Security

Online Wills

Today you can not only purchase a will online and download a form to fill out, you can even find websites that will let you create a free will and sign it digitally. You should not use these services.

There is stiff competition for cheap online wills.

There are all sorts of websites that offer wills at various prices and even for free. There might be hundreds of these sites, if not more.

They regularly pop up and try to beat each other in search engine rankings.

One new trend is for sites to have wills that are completely digital. You can answer some questions to have the will made.

You then sign the will digitally and think you have a will, as Jewish Link of New Jersey discusses in "Why You Really Don't Want an Online Will."

The problem?

If you use one these sites, you really do not have a will.

You have nothing at all but lost time.

In order to be valid in court, wills must be executed in specific ways.

That means you need to sign the will in front of witnesses, who also need to sign the will.

In some states, a notary public must also be present to certify that you and the witnesses signed the will.

If these steps are not taken, then the will cannot be entered into probate court.

Online wills are not worth your time.

Even if they do not make the basic error above, you cannot trust them to not make other mistakes.

Wills need to be carefully crafted legal documents. You should see an estate planning attorney to get one.

Reference: Jewish Link of New Jersey (August 24, 2017) "Why You Really Don't Want an Online Will."

Suggested Key Words: Wills, Estate Planning

 

Estate Planning With Few Assets

People who do not have very many assets, still need to get estate plans.  However, the best plans for them may not be the same as the best plans for wealthier people.

Much of the estate planning advice you can find online is written with the idea that the person receiving the advice has some wealth built up.

It is estate planning for people who are rich or those who will become rich.

However, most people in the U.S. are not rich.

Millions of people have very little wealth built up, but they still need to plan for the assets they do have and that they want to protect.

That can be different than what the wealthy need to do, as the Napa Valley Register points out in "New dad wonders about estate planning."

One thing people with limited assets should understand, is that they might not need a trust to avoid probate.

Most states have a law that provides for the simple transfer of assets, if the estate is below a certain total amount. In such instances, even a will does not have to be entered into probate.

The amount varies from state to state, so you will want to check with an estate planning attorney in your state.

Nevertheless, just because you might not need to worry about probate, does not mean you should not get an estate plan.

If you have minor children, for example, then you will definitely want a will so you can choose who would be your child's guardian, if anything happens to you.

Estate planning attorneys work with all kinds of clients from every income level. Do not think that a lack of assets disqualifies you from seeking their services.

Reference: Napa Valley Register (August 24, 2017) "New dad wonders about estate planning."

Suggested Key Words: Estate Planning, Probate

Estate Planning Mistakes

Some of the biggest estate planning mistakes that people make are not technically estate planning, but they can have a big effect on an estate.

When people are planning for their estates, they want to make sure they do not make any mistakes.

It is important that the plans can be carried so assets are distributed in the way they wanted and so taxes, court costs and attorneys' fees do not eat up a large portion of the estate.

Avoiding those types of mistakes is important in estate planning.

However, a potentially bigger mistake is not planning for end-of-life care while planning for an estate, as Forbes points out in "The Biggest Estate Planning Mistake People Make."

Some end-of-life documents you should get from your estate planning attorney include:

• A Durable Power of Attorney -- With this document you can appoint someone else to handle your financial responsibilities, if you are ever unable to do so due to incapacitation. This is important if you want to make sure that your bills get paid on time, for example.
• A Health Care Power of Attorney -- This document lets you appoint someone else to make medical decisions for you, if you are unable to do so. When doctors need to know what decision to make about your care, this is the person they will ask.
• A Living Will -- This document allows you to give advanced directives to medical professionals about what procedures to give you or to withhold in the event you are incapacitated, terminally ill and unable to communicate your wishes.

Reference: Forbes (August 16, 2017) "The Biggest Estate Planning Mistake People Make."

Suggested Key Words: Estate Planning, Living Will, Powers of Attorney

 

Even without an Estate Tax, Trusts are Beneficial

 Many people get trusts as their primary estate planning instrument because of the estate tax, but trusts do have many other benefits.

With Congress taking up tax reform soon, one thing that many people are following is President Trump's desire to eliminate the estate tax.

It is important for many people because the estate tax can take a sizeable portion out of an estate.  Many people have designed their estate plans around not having to pay the tax.

If the estate tax is repealed, then people might have good reason to change their estate plans and they might decide to get rid of their trusts.

That is one of the main reasons people get trusts. They are a way to avoid the estate tax.

However, do not plan on scrapping your trust yet,  since there are other reasons to get trusts than the estate tax, as Elder Law Answers discusses in "Are Trusts Still Useful If the Estate Tax Is Repealed?"

One of the best things about trusts is that they do not have to go through the probate process, which can be very expensive and time-consuming, depending on the state in which you live.

Trusts can also be kept private so your estate plan is not shared with the general public, as is often the case with wills.

Trusts can be used to pass your assets to beneficiaries in a controlled way and only after certain conditions are met. The truth is that trusts are an extremely versatile estate planning tool and beneficial with or without an estate tax.

It is too soon to know if the estate tax will be repealed.

If it does happen, do not let it fool you into thinking you no longer need a trust.

Reference: Elder Law Answers (June 30, 2017) "Are Trusts Still Useful If the Estate Tax Is Repealed?"

Suggested Key Words: Trusts, Estate Tax