Arizona Wills & Trusts Blog

Study On The Effects Of End-Of-Life Planning

Wills, Trusts & Estates Prof Blog: The Journal of the American Medical Association recently published a study focused on end of life care. The study found that patients are more likely to have a higher quality of life and be at home when they die when medical personnel know the patient’s end of life wishes. Additionally, informing medical personnel about a patient’s end of life wishes can save Medicare about $5,600 per person in most regions of the U.S. (end of life treatment accounted for over a quarter of Medicare expenditures in 2006).

On the Net2016-12-13T20:33:38-08:00November 11th, 2011|Healthcare Directives|

Religion And The Living Will

Forbes: “If I should remain in a persistent vegetative state for more than 15 years, I would like someone to turn off the TV.”

This was the first item Paul Rudnick listed in his New Yorker parody, “Living Will.” But while his 2005 essay continues to amuse, living wills are no joke. They’re extremely difficult to think about and bring oneself to sign. For some people they also raise cultural and religious issues.

A living will, also known as a healthcare directive or advance directive, is a legal document authorizing someone to “pull the plug.” Of course it doesn’t say so that bluntly. Instead, it’s phrased in terms of withdrawing or withholding life‑sustaining procedures for a terminal condition if death is imminent. The provisions –for example, about not giving you intravenous fluids, using a machine to help you breathe or restarting your heart — are nauseating to contemplate. But unless you sign a living will, friends and family may be left to guess about your wishes or doctors may refuse to carry them out. This just adds to their stress at an already stressful time.

On the Net2011-11-11T09:44:35-08:00November 11th, 2011|Healthcare Directives|

‘Perfect Storm’ For Estate Planning

Investment News: Politics, the weak economy and low interest rates have combined to create one of the best environments for estate planning in a generation, according to experts. “If individuals are trying to transition assets to the next generation, we currently have a perfect storm — in a good sense — to do it,” said David Scott, vice president of advanced sales for Penn Mutual Life Insurance Co.

The elements of that perfect storm begin with a $5 million exemption from estate taxes ($10 million for married couples), which was part of the Middle Class Tax Relief Act of 2010 enacted in December. The value of real estate assets and securities are at low levels, making it more attractive to give such assets to other individuals. And with interest rates near zero, wealthy clients also can make loans to their children and to trusts at a very low cost.

On the Net2016-12-13T20:33:38-08:00November 8th, 2011|Estate Planning, Estate Tax|

A Guide To Talk To Your Parents About Estate Planning

The Herald – Monterey County: When it comes to family interaction and communication there is as much variety as there are families.

Some parents hold their financial information close to the vest, build their wealth and, once the estate planning is done, tuck those documents away and never discuss the plans with children. Another family may have a child who begs and pleads with parents to “get your affairs in order” only to have an unplanned, expensive estate administration to contend with once the parents pass on.

Then there is the parent who will call the family together, begin to discuss estate plans and is greeted by a crescendo of “Oh, don't worry Mom, you are still young!” or “We don't care about your money — we just love you!” However well-intentioned the children are in this case, when a parent broaches the subject of their wealth and end-of-life plans, children must listen and lend support.

Let's face it, very few people enjoy talking about death and dying and some people never undertake the planning process, leaving family members to either guess about what Mom may have wanted done or have state law govern their actions. So, if a parent comes to you and says, “I want to talk with you about my will,” please set aside the fact that it makes you uncomfortable and listen to them.

Once you have heard their plans, a few things may happen. Here are some suggestions about what you should and should not say in response.

On the Net2016-12-13T20:33:38-08:00November 8th, 2011|Estate Planning, Trusts, Wills|

Probate Nightmare: South Carolina AG Rewrites James Brown’s Estate Plan

Estate of Denial: The South Carolina Supreme Court heard arguments Tuesday in the attempt by former James Brown trustees Robert Buchanan of Aiken and Adele Pope of Newberry to set aside a 2008 deal between former S.C. Attorney General Henry McMaster and some of Brown’s disinherited claimed heirs to transfer about $50 million from Brown’s “I Feel Good” Trust.

McMaster’s deal rewrote Brown’s estate plan, giving McMaster control of Brown’s assets through a trustee selected by the attorney general and can be removed at will. The agreement also gave away more than 50 percent of Brown’s assets to disinherited relatives and claimed relatives.

Buchanan and Pope argue the court’s decision may determine the future of private philanthropy in South Carolina.

Brown’s estate plan dedicated his entire $100 million dollar music empire to education. After providing education trusts for seven grandchildren, Brown put the rest in the James Brown “I Feel Good” private foundation to be used solely for scholarships to needy children.

In the Aug. 10, 2008, agreement, McMaster rewrote Brown’s estate plan to give 25 percent of the music empire to Brown’s companion and another 25 percent to five of Brown’s more than one dozen claimed children. McMaster’s rewrite was subsequently amended to leave the “I Feel Good” foundation with only about 47 percent of Brown’s music empire.

On the Net2011-11-08T08:39:31-08:00November 8th, 2011|Estate Fights, Probate, Rich & Famous, Trusts|

Fight Over Jim Reeves’ Estate Goes To Trial

Estate of Denial: More than 40 years after the death of country singer “Gentleman” Jim Reeves, a Nashville court will determine the fate of his musical legacy – and the ownership of his considerable posthumous royalties.

Reeves heirs – chiefly his nieces – and the surviving second husband of his widow Mary Reeves Davis will return to Davidson Country Probate court January 23.

The two-day trial will determine how big a stake Terry Davis, the second husband, has in Mary Reeves Estate, which owns Jim Reeves’ music royalties. Those royalties have ranged from $100,000 to $400,000 per year, according to court records.

Jim Reeves was a country crooner and ambassador of the “Nashville Sound” of the 1950s and 1960s. One of his best-known songs, “He’ll Have to Go,” includes the lyrics “Put your sweet lips a little closer to the phone.” He died in a Brentwood plane crash in 1964 at the age of 39.

On the Net2011-11-08T08:21:44-08:00November 8th, 2011|Estate Fights, Rich & Famous|

Lawsuits Claim National Future Benefits Caused Its Estate Planning Clients Big Bucks in Unnecssary Fees

Arizona Republic: Arizona seniors lost millions in annuity fees, lawsuits say. Hundreds of Arizona senior citizens cashed in their retirement investments and paid millions of dollars in unnecessary fees, according to lawsuits accusing a Scottsdale-based estate-planning company of taking advantage of vulnerable clients. Federal and state court lawsuits claim officials with National Future Benefits Unlimited generated large commissions by scaring and misleading elderly clients into bailing out of existing annuities and buying new ones. The moves left the clients paying steep surrender fees to insurance companies and facing potential tax liabilities, according to the lawsuits. . . . In one of the lawsuits, an insurance company is accusing National Future Benefits of systematically targeting clients to cash out their annuities; in the other, an elderly Phoenix couple contend they were defrauded out of most of their assets. National Future Benefits President Randall Jaeger denies any wrongdoing. . . . In addition to facing the two lawsuits alleging fraud and illegal activity, National Future Benefits has a history of state regulatory complaints and this year was investigated by Arizona Adult Protective Services. The lawsuit involving the elderly couple led to an $866,000 settlement this year and triggered an elder-abuse claim filed with the Arizona Attorney General's Office.”

Do you think that you were defrauded by National Future Benefits Unlimited? If so, we may be able to help. Please contact Norm Keyt at 602-265-0273 or [email protected].

On the Net2016-12-13T20:33:38-08:00November 7th, 2011|Estate Planning, Lawsuits|

What You Must Know Before Writing Your Will

AARP.org: Writing a will isn't the most pleasant of tasks. After all, by doing so you're not only acknowledging your own inevitable demise but actively planning for it. That might explain why so many adults avoid this cornerstone of estate planning. According to an AARP survey, 2 out of 5 Americans over the age of 45 don't have a will.

But creating a will is one of the most critical things you can do for your loved ones. Putting your wishes on paper helps your heirs avoid unnecessary hassles, and you gain the peace of mind knowing that a life's worth of possessions will end up in the right hands.

“A will is an important way you can stay in control over who gets what of your property,” says Sally Hurme, an attorney with AARP, “and by planning in advance you can also save your family time and money.”

Richard Keyt2016-12-13T20:33:38-08:00November 1st, 2011|Estate Planning, Wills|

Estate Planning Issues For Same-Sex Couples

Record Online: Thousands of same-sex New York couples have wed since July, when the state became the sixth and largest to legally allow such unions. The change means that these couples are no longer required to pay state taxes on domestic partnership benefits, will gain access to workers' compensation benefits, can bring wrongful-death lawsuits on behalf of a spouse, and can file joint state tax returns.

Equality fight goes on

However, the fight for equality continues. Same-sex marriages are specifically repudiated at the federal level through the Defense of Marriage Act (DOMA), which defines marriage as a legal union between one man and one woman. This has significant repercussions on the estate planning needs of married same-sex couples. These couples cannot file joint tax returns or joint bankruptcy petitions. Upon the death of one spouse, the other cannot inherit veterans benefits or Social Security benefits. Also, property passing to a surviving spouse is subject to federal estate taxes. It is estimated that married same-sex couples will still be denied more than 1,000 federal benefits automatically given to heterosexual married couples. In addition, surviving same-sex spouses are no longer subject to New York estate taxes on assets they receive from their partners at death.

Richard Keyt2011-11-07T07:11:23-08:00November 1st, 2011|LGBT Planning|

Estate Planning Explained

Wall Street Journal: Many of the emails we receive from readers touch upon estate planning, a source of confusion and concern. With that in mind, we recently spoke with Rachel Emma Silverman, an editor and reporter at The Wall Street Journal and author of a new book, “The Wall Street Journal Complete Estate-Planning Guidebook.” Designing such plans, she notes, invariably involves “time, expense and hassle. But failing to do so can be a recipe for disaster.” Here are excerpts from the conversation:

WSJ: Why is it that those two words—”estate planning”—cause so much anxiety?

On the Net2011-11-01T10:16:47-07:00November 1st, 2011|Estate Planning|

Muammar Gaddafi’s Will

Examiner.com: I ran across an unusual article that contains words “attributed” to Muammar Gaddafi:

“This is my will. I, Muammar bin Mohammad bin Abdussalam bi Humayd bin Abu Manyar bin Humayd bin Nayil al Fuhsi Gaddafi, do swear that there is no other God but Allah and that Mohammad is God's Prophet, peace be upon him. I pledge that I will die as Muslim. Should I be killed, I would like to be buried, according to Muslim rituals, in the clothes I was wearing at the time of my death and my body unwashed, in the cemetery of Sirte, next to my family and relatives.

On the Net2011-11-01T10:10:35-07:00November 1st, 2011|Wills|

Does The Estate Tax Hurt The Poor?

Estate of Denial: I’m sure there’s a lot to be said for rich people, but they sure do consume a lot of resources. I wish they’d leave more for the rest of us. That’s why I oppose the death tax.

The death tax sends a powerful message to rich people: “You can’t leave everything to your heirs, so spend now, before it’s too late. Burn more fuel. Demand more timber for your mansions, more steel for your private planes, and more fiberglass for your yachts.”

Then all those resources—the fuel and timber, the steel and fiberglass—become unavailable to build factories, so the rest of us get worse jobs at lower wages. Those resources are unavailable to build farm equipment, so we all pay higher food prices. They’re unavailable to build roads and schools and hospitals.

I don’t begrudge anyone the fruits of his labor. But the death tax encourages people to pick extra fruit, leaving the trees a little barer for the rest of us.

On the Net2011-11-01T10:00:32-07:00November 1st, 2011|Estate Tax|

Kim Kardashian Had A Prenup!

LA Times Blog: Kim Kardashian and Kris Humphries have signed a much-discussed prenuptial agreement, it was revealed Wednesday in what might have been the day's largest bit of predictable breaking news.

The newlyweds, who tied the knot in Montecito on Saturday before friends, family and the cameras of E!, have agreed to protect their mutual assets against the seriously microscopic chance of divorce.

What's at stake? Kardashian's $35-million personal fortune, up against Humphries' NBA payday of $8 million to $16 million, according to THR.

The pair would be wise to protect their individual assets. If he continues to succeed in the NBA, Humphries would only see his salary climb, and Kardashian really knows how to make bucks on deals selling, um, the Kardashians. Of which there are many. Some of which can go awry. So this keeps him out of her business.

On the Net2016-12-13T20:33:38-08:00November 1st, 2011|Prenuptial Agreements, Rich & Famous|

James Brown Estate Thriving While Estate Fight Continues

Los Angeles Times: The late James Brown once warned the world: “Papa don't take no mess.”

So one might assume that Brown — the Steve Jobs-slash-Albert-Einstein-slash-Benjamin-Franklin of funk (that's right Isaacson, we're paging you!) — would be pleased with news from the Associated Press that a professional money manager has been able to take the atrophied remnants of Brown's charitable trust and effect a remarkable turnaround, wiping more than $20 million in debt off the books and putting it in a position to fund thousands of college scholarships to poor students. The credit goes to a series of canny licensing deals.

But that arrangement may now be in peril due to a challenge from two ousted trustees, Adele Pope and Robert Buchanan, who have filed a brief with the South Carolina Supreme Court that might be best summed up in the lyrics to Brown's 1973 hit “The Payback, Pt. 1”:

“I can dig rappin'… I can dig scrappin'. But I can't dig that backstabbin'!“

Richard Keyt2016-12-13T20:33:38-08:00November 1st, 2011|Estate Fights, Rich & Famous|

A Review Of Quicken Estate Planning Software

Florida Estate Planning Lawyer Blog: I recently receive a copy of Quicken Willmaker 2009. I have previously written about many articles about the unintended results that occur with Do It yourself and Free Estate Planning Documents created by individuals without the advice of counsel and the problems with online document preparation services like LegalZoom and RocketLawyer.

I decided to try out a few of the documents in Quicken to see if they had improved the quality and accuracy of their Florida documents. Last week I wrote about problem with the Quicken Willmaker 2009 Durable Power of Attorney. This week I will be looking a the Revocable Living Trust. I have previously written about the many problems in using Quicken to create a Firearms Trust but for this article I will be focusing on the typical issues with regular estate planning and living trusts.

On the Net2016-12-13T20:33:39-08:00November 1st, 2011|Common Problems, Do It Yourself - Fail, Estate Planning, Trusts|

Famous Examples of Bad Estate Planning

The Telegraph: Famous people who died without a will or failed to update their will before dying.

On the Net2016-12-13T20:33:39-08:00October 26th, 2011|Rich & Famous|

10 Odd Requests

Wills, Trusts & Estates Prof Blog: Sometimes when individual dies, they leave behind unusual requests for their send-offs. For example, Arch West, creator of Doritos, asked to have Dorito chips scattered into his grave. Ten more strange send-off requests are below:

1. Frederic Baur (creator of the Pringles tube) requested that his remains be stored in, you guessed it, a Pringles tube.

2. Malcolm McLaren (the Sex Pistols’ former manager) requested his coffin be spray painted to say “too fast to live, too young to die,” asked for four black horses to bring his coffin to a deconsecrated church, and requested a “minute of mayhem” in lieu of a moment of silence.

3. Gene Roddenbery (creator of Star Trek) had his remains launched into space in 1997. His remains re-entered the atmosphere in 2002.

4. Hunter S. Thompson (the gonzo journalist) had his ashes fired from a cannon (paid for by his friend Johnny Depp) from a 150 foot tower topped with the symbol of Thompson’s journalism.

5. Tupac Shakur (rap artist) allegedly asked his rap group to mix his remains with marijuana and smoke them. The group claims to have followed Shakur’s request, but Shakur’s family says the rapper’s remains are closes guarded.

On the Net2011-10-27T16:53:54-07:00October 26th, 2011|Odd Requests|

An Estate Planning Mistake You Don’t Want To Make

Examiner.com: One of the biggest mistakes Nicole Middendorf, CDFA sees people make is spending a lot of money getting divorced and then once the divorce is over, they don’t change their beneficiaries on their 401k, IRA’s, or even their will/trust.

Once your will is written, you can not just ignore it. It is extremely important to keep your will updated with your estate planning attorney. Life and circumstances change over time, and your will should reflect those changes. In order to make sure your will reflects your wishes, Nicole has recommended that your will be updated whenever one of the following occurs:

A divorce
A death
A birth of a child
A marriage
If you change your mind on your beneficiaries

On the Net2011-11-07T07:09:48-08:00October 26th, 2011|Common Problems, Estate Planning|

The Importance of Appointing a Guardian for Your Children

Barrington Patch: Lisa, if something happened to my husband and me, who would take care of our young children? We have heard that we need to appoint a guardian. However, we are confused and don't understand the necessary steps we must take. Would you please explain how we go about appointing a guardian and some of the issues we should consider? – Cheryl

Dear Cheryl,

Thanks for your question, and I certainly understand your concern. Choosing who will raise your minor children if you and your husband die is probably one of the most difficult decisions parents must make – my husband and me included. This task is often so tough that many parents never do it.

On the Net2011-10-26T12:52:58-07:00October 26th, 2011|Estate Planning, Guardianship|