Tips, Techniques and Things to Think About - A Practitioner’s Point Of View

“When I can no longer care for myself, I want to stay in my home.” We hear this often when discussing what type of care a client wants. Many revocable trust agreements state a desire for the grantor (the person creating the trust) to remain in the home. The home obviously seems the better choice versus a care facility (nursing home, memory care facility, assisted living, etc.), but, is it really? No one wants to think about the possibility of needing assistance as we age. However, it is better to think about it now, before it is too late. Children often disagree on “what is best” for mom or dad.

A person’s wishes and desires, in terms of what they want when they can no longer speak for themselves, often have not been expressed. When they have been expressed, how accurate is that expression? Who will make the decision of where you should be when you no longer can? If you aren’t sure, you might want to figure it out. It is a rather important decision. Here are some things to ponder:

1. Is there one person in charge to make that decision? If not, what happens if the “group” doesn’t agree? Do you want a court to be involved?
2. Do you object to being moved to a new location? What if your children live in other states? Do you want to move to a facility near a family member? If so, which one?
3. Is staying in your home really a better option? Read up on this, get your facts straight, visit care facilities. If you have stated in legal documents, or to family members, your desire to stay in your home, make sure you are certain that is the best option. You may have second thoughts about your decision.
4. Have you been upfront and honest with your children about your wishes?
5. Do you want a child that is primarily responsible for you to be paid for his or her services? It is a little messy when you no longer have capacity and the caregiver/child is trying to explain that Mom said she wanted me to be paid for helping.

What you want, and what is best for you, are not always the same. Designating a person that you trust to make these decisions can prevent an unnecessary trip to the courthouse. A guardianship can be costly and intrusive.

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What happens to our “stuff” when we die is changing now that our stuff is changing. Our estate doesn’t just consist of real estate, business entities, financial accounts, furniture and furnishings. We now have Facebook, Twitter, blogs, email accounts - who gets them when you die? Can you transfer these assets into your revocable trust? Legacy Locker started following me on Twitter the other day. I was interested. I am not sure this is the answer, but it might be. Excellent estate planning attorneys and financial advisors are going to be thinking about these assets.

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You should know the following things about your estate plan. If you don’t, you might want to review your documents. And if you don’t understand your documents, consider making an appointment with your attorney for a consultation.

1. Do you have an estate plan? Some people aren’t sure. They come to our office and have a recollection of signing a will years ago.
2. Do you know where your original estate planning documents are located?
3. Does your estate plan include estate tax planning? This is a simple question but most people do not know the answer. This is IMPORTANT stuff. Estate tax planning can save you hundreds of thousands of dollars if you have a taxable estate. On the other hand, if you do have estate tax planning, your surviving spouse may have an unnecessary expense if you do not have a taxable estate (although there are many other benefits, including asset protection, that may outweigh this expense).
4. Who are your fiduciaries (executor, trustee, personal representative, guardian)? Are they still the people you want in these roles?
5. Does your plan include probate avoidance? If it does, has everything been done to implement this plan?
6. When was the last time you checked your beneficiary designations on your retirement accounts and life insurance? Do they match your overall estate plan?
7. Have you given a copy of your health care designation and living will (also known as an Advance Health Care Directive) to your primary care physician? Have you discussed your health care decisions with your named surrogate?
8. How long ago did you execute your estate plan? Has your situation changed?

We go to the dentist twice a year, have our car’s oil changed every three thousand miles and get a hair cut every seven weeks. Getting your estate plan reviewed every two to three years should be doable.

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I teach a class called Mastering the Fundamentals of Estate Planning. The course is for attorneys, CPAs and financial planners. Most are new to estate planning. Estate planning is rather easy, except for all the hard parts. After my seminars, I usually get a number of emails that describe a client’s situation followed by “what would you do?” What I would do and what you would do are probably not the same. Rarely is there one right answer. Estate planning is a lot about balancing. A plan can sound terrific, until you look at the client’s assets or particular circumstances. Real estate, closely-held businesses, large retirement assets can cause issues. Blended families, substance abuse issues and estranged children make for interesting solutions.

I love estate planning because it allows us to be creative. The more creative we are, the more solutions we can offer our clients. The Perfect Estate Plan is the plan that your client picks after being fully informed of the benefits and burdens of the various options.

On April 30th, I will be teaching Mastering the Fundamentals of Estate Planning in Orlando. I hope you can join me to discuss the perfect estate plan. For more information, go to Education On Point.

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This is a hot Google search topic that brings people to my blog. Specifically, what do you do if you have minor children? Why not discuss this with your estate planning attorney? Perhaps you don’t have one.

Let me get this straight. You have minor children and you do not have a will. Who will be the guardian of your minor children if you die? Who will manage the assets,  including your life insurance, necessary to raise your children? Where is this on your list of priorities?

A few days ago, I spoke briefly with a young man who has a good job and drives a nice car. He also has a young family that includes minor children. He doesn’t have a will. Perhaps he is searching the internet to find out how to fill out a beneficiary designation form.

I apologize for my frustration this morning. The internet contains a wealth of information, but it doesn’t take the place of professional advice. You must figure out your priorities. If you have young children and you do not have a will, please send me an email and tell me why. I really am curious.

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I am attending a Senior Resource Expo at The Jane Adams House this weekend, March 14th, 10:00 - 2:00. It is an expo of professionals. Lots of resources will be there including legal, banking, The Council on Aging, accounting, home care, insurance and travel agents. If you would like to RSVP, please call 904-261-9494. I hope to see you there!

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I just attended a free CLE on an interesting topic with a free lunch included. Relative to the number of attorneys, CPAs and financial advisors in Jacksonville, it was a small turn out. What gives?

As a CLE provider, and one who charges for my courses, this was not good news. But, as an attorney, was it? One reason I started a continuing education busines was my own enthusiasm when I attend a great, or even good, continuing education course. Sometimes during a course,  when the presenter is describing a common mistake professionals make, I get nervous and think “oh no, I hope I didn’t do that!” Other times, like yesterday, I get excited. The presentation contained interesting information, creative planning and new ideas to pass on to clients and other professionals.

Even if you already know the information, the right presentation can spark your creativity. If you want more information on self-directed IRAs, check out The Entrust Group. Glen Mather, a great presenter, of The Entrust Administration Services, Inc. got me thinking about the following:

1. Conversion from a traditional IRA to a Roth IRA in 2010 (no income cap and income tax spread out over three years)
2. Health Savings Accounts - might be something to consider
3. Alternative investments in IRAs and Qualified Plans (my IRA can own real estate or loan money?)

The best professionals stay on top by staying informed.

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A client dropped off a death certificate of a loved one today. There is some interesting information on a death certificate. I decided to do some digging about the history of death certificates. My research stopped immediately when I came across a book by Kenneth V. Iserson, M.D., Death to Dust: What Happens to Dead Bodies?  The title captured my attention; the table of contents sold me on the book. Here is just a sample:

And my favorite: Will the “Worms Crawl In”?

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The perfect estate plan requires more than just an attorney. We are only one of the many players in the game. I admit, we like to be the quarterback and coordinate all of the professionals to optimally assist our clients. As long as one member of your team takes the lead, your plan has a much higher likelihood of being perfect.

Different people and situations call for different professionals. I am not the best fit for all people - I have my niche. So, it is best to have a depth and breadth of legal and financial professionals in your Rolodex. Some do well with retirees, others work better with young couples. We cannot be all things to all people and we shouldn’t try to be.

If you are a professional with too few entries in your little black book, consider coordinating a speed networking night at a local establishment. Trust me, most coffee houses or restaurants would welcome the task of helping you put together an event like this. Try spending six minutes with twenty or more new contacts. If you like someone, you might try lunch next week. Now is a great time to build that army of professionals who will best serve your clients.

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