Michigan Elder Law Blog

There was a front page article in Saturday's Wall Street Journal about who controls a digital legacy. We previously blogged on this topic in September.

Users of Yahoo email and photo services, as part of their terms of service that they agree to, expressly agree that their account won't be transferred without their explicit permission. To ensure their account transfers at death, users need to provide consent and their account information in their estate plans.

Microsoft's Hotmail will not provide families with passwords or control of an account. But with appropriate documentation it will give next of kin the deceased's emails on disc.

How can our readers ensure that their wishes regarding their online legacy/digital assets are respected? By making sure that their wishes are expressly addressed (referencing account name and their consent) in their estate plan. It is also helpful to create a reference guide listing your various accounts, usernames and passwords.

As always, your first call should be to an experienced Michigan estate planning attorney, such as the attorneys at Barsch & Joswick, PLLC, to have to proper estate plan drafted to take into consideration your wishes regarding your online legacy/digital assets. Call today for a free consultation.

Happy Holidays! It's the time of the year when we gather with those closest to us to celebrate the holidays. For some of us, this is the only time of the year we get to see family and friends. Often, when we only see a friend or relative once or even a few times a year, the change is more pronounced, whether it's weight loss, a new hairdo, or, in the case of our elderly relatives, their ability to care for themselves. Often, the reason is a decline in memory, usually as a result of memory related illness such as Alzhiemer's or dementia.

This article discusses a few important topics to discuss if you have elderly loved ones:

1. Make a plan. Your parent or loved one needs to prepare for the day when they will no longer be able to make their own decisions. This includes drafting a comprehensive estate plan with an experienced Michigan Elder Law attorney such as the attorney's at Barsch & Joswick, PLLC.

2. Be transparent. Discuss your affairs with your loved ones. Let them know where you keep your important documents. Provide them with a list of your accounts and the contact information of your professional advisors, such as your attorney, CPA, and financial planner. Also discuss your wishes with them. This will make it easier if they have to make tough decisions, such as for end of life matters, down the road.

3. Seek professional help. Resources are available to you. At a minimum, contact an experienced Michigan Elder Law attorney. Also, consider consulting with a geriatric care manager to assist with care and placement decisions or join a support group for individuals with elderly loved ones. Remember, you are not alone.

If you have a loved one who is not able to live alone, contact the experienced Michigan Elder Law attorneys at Barsch & Joswick, PLLC today for a free consultation.

One of the most important decisions individuals make in their Estate Plan is who will serve as their Trustee when they are no longer able to do so. Trustees are responsible for managing trust assets and ultimately making distributions from your Trust to your beneficiaries.

The job of Trustee can be a daunting and ultimately thankless task. As an Estate Planning attorney, I often marvel at how people want to undertake the position considering all that it entails. It is a job that involves a lot of time and can ultimately lead to hardship if beneficiaries impose their ill will at the trust distribution towards the Trustee, which often happens, even though the Trustee is just following orders.

This article discusses the key questions to consider in determining who to name as your Trustee. They are as follows:

1. How large and complex are the assets in the trust? If the estate is large and complex, you should consider appointing a corporate trustee. Corporate trustees typically get paid on a percentage basis, and often charge a minimum fee, which may make them too costly for modest estates. However, they provide a level of professionalism and expertise that is often missing when individuals take the position;

2. Can anyone in your family do the job? This depends on if they have the skill set to pull off the job. The job requires a heavy workload and certain skills such as having financial acumen and being a good manager come in handy;

3. What is the family dynamic? If there is disharmony in the family, it may be better to have a corporate trustee to ensure your wishes aren't usurped;

4. Other options. Another common option is to have Co-Trustees. One can be a close friend or family member, and the other can be a professional such as a lawyer or accountant or a corporate trustee. This arrangement often provides the best of both worlds.

When setting up a comprehensive Estate Plan, you should always consult first with an experienced professional to assist you, such as the experienced Michigan Estate Planning attorneys at Barsch & Joswick, PLLC. Call today for a free consultation.

More and more people in the United States are childless. According to census data, in 2010 nearly 19% of women age 40 to 44 had not given birth, compared to 10% in 1980.

This raises an interesting question - who will take care of these individuals as they age? This article provides an interesting discussion on what childless individuals should do in order to ensure their needs are meet. Some helpful tips from the article:

1. Set up Powers of Attorney (Health & Financial). This will help ensure that people you trust will carry out your financial and medical (care, custody, and placement) wishes if you are unable to;

2. Consider long-term care insurance. We've previously blogged on this topic here and here. If you can afford, it's something childless individuals should consider purchasing;

Continue reading "Childless and Aging" »

We've previously blogged on this topic here, and here, but planning for your pet's future care is a relative "hot" topic in estate planning circles. Specifically, if something should happen to you, who will take care of your pet? If your wishes are not specified, your pet could wind up in a shelter or have to be put down.

This article suggests a few steps that should be taken to ensure your pet will be taken care of after you are gone. They are:

1. Get a commitment. Find someone who is willing to become your pet's guardian. If you can't find someone, find a local "no kill" shelter or rescue organization to take in your pet;

Continue reading "Pondering a Trust for Your Pet" »

As society moves closer a fully online world, if it isn't there already, an interesting issue is arising in estate planning - how to pass down our digital assets, such as email, Facebook, Ebay and Instagram accounts? Some of you may recall in 2004 Yahoo denying the family of a soldier who died in Iraq access to his email account, citing the companies term of use of policies. How do we ensure that our digital assets pass to our loved ones, and not be lost forever in cyber-abyss?

This article discusses what happens to a persons digital accounts after they die, and what lawmakers are doing to govern access to post-death access to digital assets. Some helpful hints from the article:

1. Make sure your digital assets are addressed in your estate planning documents. Be specific so your successor trustees and executors are able to locate your online documents and assets;

Continue reading "Passing Down Digital Assets" »

I read this article and thought it would be of interest for our readers. The article discusses what you should consider in order to make the most of your trust. Here are a few of the highlights:

1. Don't attach too many strings. According to the article, one of the chief aims of estate planning should be to avoid leaving a legacy of ill will. By attaching too many strings, such as mandating that a grandchild use trust funds only for tuition at a specific university or go into a certain occupation, you are increasing your chances of there being ill will among your heirs.

2. Make special arrangements for beloved properties. Do you have a family cottage on the lake in Northern Michigan? If so, what will happen to it upon your passing? There are many options, such as dictating that it be appraised and listed for sale, kept in the family, create a family LLC to manage and maintain the property (and schedule who gets to use it when), or distributed outright to the heirs and letting them figure it out.

Continue reading "How to Control Your Heirs From the Grave" »

Here's a link to a great article I read over the weekend on how to avoid estate-tax traps. With the estate-tax exemption scheduled to drop next year to $1 million, with a top tax rate of 55%, avoiding these traps are more important than ever.

The best way to avoid these potential traps is to meet with an experienced Michigan Estate Planning attorney, such as the attorneys at Barsch & Joswick, PLLC. Call today for a free consultation.

I just read a great article as to why estate planning is important. Some important points from the article:

1. Estate planning must be done while still competent. If one is not competent, they cannot execute legal documents such as a Last Will and Testament; Trusts; and Powers of Attorney. If an individual is incompetent, then the only way to manage one's legal affairs and make legal decisions is through the Probate Court (Conservator for finances, Guardianship for for health care and custodial decisions, and to handle one's estate at death).;

2. Have a conversation with your mom or dad about estate planning. As them if they have an estate plan. If they do not, suggest making an appointment with an experienced Elder Law attorney.;

Once they meet with an experienced Elder Law attorney, the individual's personal circumstances can be evaluated (financial, family, etc), recommendations can be made, and the appropriate documents (Wills, Trusts, Powers of Attorneys, Deeds, etc), can be prepared.

As the article mentions, prior to the documents being executed, it is important to discuss the particulars with your appointed Successor Trustee, Personal Representative, Power of Attorney, etc. Make sure they are aware that you would like to appoint them to act on your behalf when you are unable to do so and that they are up to the task. Better yet, have them discuss with your attorney what their rights and responsibilities are when serving as a Trustee or a Power of Attorney.

If you or someone you love does not have an Estate Plan, contact the experienced Michigan Estate Planning and Elder Law attorney's at Barsch & Joswick, PLLC today for a free consultation.

This is the year to give gifts to loved ones, if you are in a position to do so. The government's $5 million gift tax exemption is due to expire this year and revert to $1 million at the end of the year. The estate tax is also set to return to a top rate of 55%.

The upshot to making gifts is that by doing so now, you will avoid future estate taxes. The downside is that if you make gifts, the property is no longer yours.

This article discusses some tips to assist you with your planning.

Regardless of your situation, it is imperative prior to engaging in any planning, you consult with an experienced Michigan Estate Planning attorney, such as the attorneys at Barsch & Joswick, PLLC. Call today for a free consultation.

Last month, I blogged on the importance of long term care insurance. I recently came across another article on the topic that I thought would be of interest to our readers. The article provides a good point/counter point by two separate writers as to why you should or shouldn't purchase long term care insurance.

Whether or not long term care insurance is right for you, it should be considered as part of a comprehensive estate plan.

Continue reading "Long Term Care Insurance" »

One can imagine what it would be like to be Mark Zuckerberg, the 28 year old founder and CEO of Facebook. He is young, rich, and about to become even richer with Facebook's IPO looming. However, being rich does not come without complications, specifically when it comes to the dreaded Estate Tax.

This article discusses the techniques Facebook insiders, which include Mark Zuckerberg, have set up to avoid paying at least $200 million of estate and gift taxes on their Facebook shares. Specifically, it appears based on Facebook's prospectus that eight separate annuity trusts, referred to as a grantor retained annuity trust (GRAT), have been set up Facebook insiders. The annuity trust effectively transfers asset appreciation from one taxpayer to another, tax free, thereby avoiding gift and estate taxes in the future.

There is also another option for Facebook insiders looking to avoid estate taxes - renounce their US citizenship. This was the strategy recently employed by Facebook co-founder Eduardo Saverin. The purpose of renouncing his citizenship will serve two purposes: 1) to avoid capital gain taxes on his shares; and 2) minimize any estate tax upon his death; though some nonresidents with US assets must file estate tax returns.

Continue reading "Avoiding Estate Taxes & Facebook" »

This is a great article that I think will be of interest to our readers. The article outlines the 7 major errors in estate planning. Out of those seven, there are two that I find to be the most common:

1. Not having a plan; and

2. Online or do-it-yourself (DIY) instead of seeking professional guidance.

Not having a plan is really a misnomer as everyone has a plan - it's just a matter if the plan is yours or not. If you don't have an estate plan, your estate is distributed according to the laws of intestate succession in the state you reside. Also, by not having your own plan, it ensures that your estate will most likely go through Probate Court.

Online/DIY is a relative recent phenomenon, especially in today's economic climate, but just as problematic as not having a plan. A properly drafted estate plan should be the culmination of a well thought out plan prepared by an experienced estate planning attorney, not an amalgam of stand alone documents, as online/DIY estate plans often are. Additionally, any mistakes in estate planning documents do not come to light until it's too late.

Continue reading "7 Major Errors in Estate Planning" »

We previously blogged about how to leave your estate to your pets. I recently came across another article that dealt with the same topic that I thought might be of interest to our readers.

Lee Dvorak, in her estate plan, wanted her perfectly healthy cat, Boots, to be euthanized upon her death. This was surprising as Dvorak left all of her $1.3 million estate to animal charities. You are probably wondering why she would want her cat euthanized?

Dvorak was afraid if something happened to her, Boots, who was a rescue cat, would not be taken care of and would end up in another abusive home. The executor of her will, Fifth Third Bank, went to court and asked the judge to block the request.

The judge agreed and Fifth Third placed Boots in a loving home with a history of caring for cats.

One thing in particular in this article gave me "paws" (sorry, I couldn't resist): if Dvorak was such an animal lover, why didn't the attorney who prepared her estate plan discuss with her the options available to Boots instead of euthanasia, such as finding an appropriate animal rescue farm to place Boots? Often times a client will come to an attorney to discuss their estate plan and have an "idea" in mind, but it is the job of the attorney to discuss with the client the implications to their "idea" and the alternative options that are available. It's hard to believe that an animal lover, who gave $1.3 million to animal charities upon her death, would want her beloved cat to be euthanized after her death.

Continue reading "Estate Planning...for Pets" »

I recently came across an article that provides a good summary as to why having an end of life plan is so important. We often tell our clients that the most important documents individuals can have are Powers of Attorney for health care (day to day care and treatment, end of life, etc.) and financial decisions. Clients often assume that absent having the proper legal documentation, a loved one will be able to direct their care and make their financial and health care decisions for them if they are unable to do so. This is not true. If you become incapacitated and do not have a Power of Attorney for health care and financial decisions, there is no one to direct your care or make your financial decisions for you.

This can become especially complex in families with multiple children or in second marriages. Often times not having the proper Power of Attorney means that the family has to petition the Probate Court to become Guardian and Conservator over your affairs. However, this can be avoided by executing Power of Attorney for health care and financial decisions before you become incapacitated. By planning in advance, you can ensure that the person that you feel is best suited to make those decisions for you is able to do so, and can keep your affairs out of Probate Court.

If you do not have Power of Attorney documents for health care and financial decisions, and are interested in setting up Power of Attorney for health care and financial decisions, call the experienced Michigan estate planning and elder law attorneys at Barsch & Joswick, PLLC today to set up a complimentary consultation.