Indian Wells Estate Planning Blog

Who Needs An Estate Plan?

The recent unveiling of Michael Jackson's will has brought up a lot of questions about wills, trusts, and estate planning: Why is his will so short? Does this mean it doesn't work? Where is all his money going? 

And then there's the statement that makes any estate planning attorney shudder in protest:

I guess trusts and estate plans are just for the rich.

Nothing could be further from the truth. Trusts and estate plans are for everybody. First of all, an estate plan describes the documents that dispose of your assets after you are gone. This may include nothing but a will and a healthcare directive, or it may include those documents plus a living trust, powers of attorney, property memorandum, and many more. The size and intricacy of your estate plan can be as small or as large as you wish, it all depends on you and your attorney.

Secondly, revocable living trusts are useful to everybody from the asset-poor young parents just starting out to the wealthy grandmother with enough property to give a house to every grandchild. This is because revocable living trusts are private and versatile documents that can be created to accommodate your unique situation, whatever it may be.

Those asset-poor young parents like the privacy of a trust--the fact that they can nominate guardians and financial conservators for their children without everybody knowing who it is. They can also use a trust to set money aside for their children's college fund, if that is important to them; or keep the family money in a singe trust for the benefit of all their children until each one has reached a certain age, when the inheritance can be divided up equally. And they can do this even if their only asset is the small house they just bought.

The wealthy grandmother likes a trust because she can leave an inheritance to her daughter, but keep it out of the hands of her daughter's untrustworthy husband; or she can set aside a sum of money for each grandchild, to be used specifically for education, not fast cars. And the trust can encompass as many bank accounts, investments, or pieces of real estate as she likes.

Trusts and estate plans are essential and useful tools not just for the rich and famous, but for everybody. Call our office to find out what kind of estate plan can benefit your family.

The Party You Plan But Can’t Attend

Every good will or trust will say something about paying the executor’s “final expenses,” otherwise known as funeral and/or memorial costs. As a small portion of what can sometimes be a very large and intricate document, this “final expense” clause can seem unimportant—but our firm knows better. We know just how important this pre-planning can be, and so does Sarah Arnquist, author of the article The Caregiver’s Last Expense in the New Old Age Blog.

A funeral comes at a time when the death of a loved one is recent and close, and many people are still in shock and in some cases struggling with the reality of loss. Funerals help grieving loved ones come to terms with death and say their final goodbyes… but for the person planning the funeral the experience can sometimes be a frustrating, painful, and expensive experience. Planning ahead for your own funeral—discussing it with your loved ones and even including your wishes in your estate plan—can remove this burden from their shoulders when the time comes.

Although pre-planning a funeral is essential, Arnquist writes that pre-paying for a funeral can actually be detrimental. According to Josh Slocum of the Funeral Consumers Alliance, there are just too many things that can go wrong, he says, and “only a few states have adequate legal protections for prepaid funeral customers.” Pre-paying may be a no-no, but setting aside funds—in an account, CDs, or a specially designated insurance policy—is always a good idea.

And when considering the final expenses of yourself or your loved one, “Judy in Oakland” (who is not quoted in the article itself, but who left an eloquent comment in the comments section) reminds us that funeral and burial are not the only expenses that need to be considered. “Disposing of the deceased’s property is an extremely daunting, labor-intensive, and complicated matter, even without real estate… disposal of furniture and goods is becoming a bigger and bigger problem — so for other caregivers out there — brace yourselves.”

Time, Technology, Fire and Flood: 3 Tips to Protect Your EP Documents

A good friend called and told me all the things that went wrong yesterday.  Anyone who has been around long enough knows that accidents happen, Murphy’s Law does exist, and things have a tendency to go wrong occasionally; computers crash, fires happen, pipes break and flood your home. And sometimes things just get lost during the passage of time. This can even happen to something as important as your estate planning documents. This is why it’s important to know where and how to store your estate planning documents once you’ve executed them.  Here are some tips:

1. Have copies. No matter where you decide to keep your signed originals, photocopies should be made and kept somewhere they can be found easily by your agents should something happen to you. A library bookshelf, or office closet is an unobtrusive but accessible place to store copies.
2. Keep your original documents someplace safe from thievery and natural disasters. Originals can be kept in a fire-safe in your home if you have one, or in a safe deposit box at the venue of your choice. If you do decide to keep the documents in a safe deposit box, be sure to put the box in the name of the trust rather than your own name. This allows your trustee to access the box (and the documents inside) when you pass away.
3. Make sure your agents and fiduciaries have the documents they will need to do their job should anything happen to you. Your will or trust should stay in your possession, along with your Healthcare Directive and various other documents, but your healthcare agent will need a copy of your HIPAA authorization, your nominated guardians should have the original document giving them permission to make health care decisions for your minor child if you are unavailable.

Every estate plan will vary, so ask us which documents to keep and which to send to your fiduciaries after you’ve signed. You can also keep electronic copy of your documents on your computer or a flash drive.  The electronic copies are just copies; but it’s one more level of protection should disaster strike.

Presidential Wills in Our Nation’s History; a Fourth of July Tribute

On the Fourth of July we look to our nation’s history and appreciate the people and events of the past that have brought us to where we are today. In that spirit of reflection, we offer on our blog this holiday weekend some of our nation’s history as relates to estate planning: the last wills and testaments of some of our more famous presidents. It is interesting to see not only a glimpse into the minds of some of our beloved historical figures, but also how this most important of legal documents has changed throughout the years.

Below are links to the wills of:

• George Washington
• Thomas Jefferson
• John F. Kennedy
• Richard Nixon

Not all of our admired thinkers had the time (or in some cases the forethought) to write a will. Among the presidents who died without either a valid will or no will at all are Abraham Lincoln, Andrew Johnson, Ulysses S. Grant, and James A. Garfield.

Our firm wishes you a happy and safe Fourth of July weekend!

Michael Jackson’s Will Answers Few Questions

The past week has been filled with media speculation about Michael Jackson and his will: Did he have one and what might be in it? Well the waiting is finally over… kind of. It turns out Michael Jackson did create a will, which was submitted to the California probate courts earlier this week. The will (which can be viewed here) is five pages long, and because it pours “my entire estate” into the Michael Jackson Family Trust, the will itself reveals very little about the specifics Jackson’s estate or his instructions regarding the administration of it.

A will, although it can remain private during your life, becomes a matter of public record once it is submitted to the probate courts after your death. In fact, the last wills and testaments of many public figures can be found online if you’re curious. But a trust is a private document, and remains private even after your death.

Jackson’s will does reveal a few details, though, namely who he chose as guardian for his children. In paragraph 8 of his will, on page 4, just above his signature, Jackson states:

“If any of my children are minors at the time of my death, I nominate my mother, KATHERINE JACKSON as guardian of the persons and estates of such minor children. If KATHERINE JACKSON fails to survive me, or is unable or unwilling to act as guardian, I nominate DIANA ROSS as guardian of the persons and estates of such minor children.”

Whether Jackson’s wishes for guardianship will be followed remains to be seen. As Jackson’s ex-wife and mother of his two oldest children, Deborah Rowe would normally automatically be awarded custody. However, there are still too many unanswered questions about the status of Rowe’s parental rights—and her desire to assert those rights—to make any claims for certain.

The one thing that is certain, however, is that whatever odd and inexplicable things Jackson may have done during his life; he seems to have done what he should to provide for his family’s financial needs and their privacy after his death.

Have you done the same?