Arizona Wills & Trusts Blog

Country Music Takes On Probate Abuse

Estate of Denial: On their Hell on Heels debut album, a new group called the Pistol Annies (Miranda Lambert, Ashley Monroe and Angaleena Pressley) has a song entitled Family Feud.

Heads up legal industry! Country music has a long legacy of capturing American life stories. When mainstream music picks up grave robbing and estate looting as one of those life stories – just a thought – but maybe the estate abuse issue has “arrived.”

“Shining light on the dark side of estate management” was our mission upon starting Estate of Denial® five years ago. While real reform of the culture surrounding probate systems will take time, any short-term opportunity to help more people more easily identify property poaching via probate (wills, trusts, guardianships and powers of attorney) is welcomed. Family Feud delivers just that message

On the Net2016-12-13T20:33:40-08:00September 1st, 2011|Estate Fights, Estate Planning, Probate|

Contrived Probate Disputes Hard To Avoid

Estate of Denial: Call us jaded, but suggestions of how to avoid “unforeseen” estate issues never seem to take into account the real ugliness at work in today’s world whereby individuals – both inside and outside the legal profession – often contrive probate disputes. All the “proper estate planning” in the world can’t stop an estate from being targeted by any combination of determined disgruntled family members, wannabe heirs and unscrupulous legal professionals.

Here at Estate of Denial®, we term such acts an Involuntary Redistribution of Assets (IRA) defined simply as the use of probate venues and/or probate instruments (wills, trusts, guardianships and powers of attorney) to divert assets from intended heirs or beneficiaries. IRA cases certainly involve a looting of assets – often of the dead, disabled, incapacitated and/or their heirs or beneficiaries, but with guardianships, it can also involve a hijacking of basic civil liberties.

And a fight within any of these scenarios often becomes an eye-opening experience that exposes the self-interested, protectionist nature of the legal industry which comprises lawyers, judges, court-related personnel and other officials (elected officials, law enforcement, etc.) or professionals utilizing our legal system to pursue goals counterproductive to the general public’s interests in their individual or collective capacities or both. Rarely does one walk away from these experiences with increased respect for the law or confidence in the “rights” alleged to protect Americans from an assortment of harms.

On the Net2016-12-13T20:33:40-08:00August 30th, 2011|Estate Fights, Estate Planning, Probate|

Naming Beneficiaries

24-7 Press Release: Assets with beneficiary forms seem appealing to people trying to set up estate plans. Such assets have the benefit of going directly to the heirs and avoiding the lengthy and sometimes costly probate process. However, people need to make sure that they coordinate their named beneficiary assets with the rest of their estate planning documents such as wills and trusts. Otherwise people may inadvertently sabotage their own plans for their possessions after they die because such forms override wills — wills do not override beneficiary designations. Those making estate plans need to know common errors to avoid when executing named beneficiary forms on assets.

Types of Named Beneficiary Assets

There are a variety of assets that can have named beneficiary forms. Some of the most common examples include life insurance policies, retirement accounts, payable or transferable on death bank accounts, U.S. savings bonds and securities such as stocks, bonds and mutual funds.

People may designate a variety of different types of beneficiaries. Some may opt to name an individual outright, while others may choose to name a group of people such as “all of my grandchildren who survive me.” A person may also name a trust or his or her estate as the beneficiary of such an asset. Finally, a person may choose to make a charity or other organization a beneficiary.

On the Net2016-12-13T20:33:40-08:00August 29th, 2011|Beneficiaries, Estate Planning, Wills|

The Importance Of Keeping Estate Plans Current

24-7 Press Release: No one really likes to contemplate his or her own mortality, but traditional wisdom teaches that a little planning during life makes things a lot easier on surviving loved ones after death — which is why it is prudent to make a will. However, many believe that once they have accomplished that task they need never think about it again. The truth is that a person needs to revisit his or her estate plan periodically to ensure that it remains current and accurately expresses his or her wishes, especially after major life events such as marriage, divorce, births, deaths, moves, changes in wealth or possessions, or changes in the law.

Reasons to Have a Will

Creating a will is crucial for each person. Some people believe that if they do not have substantial assets they have no need for a will. However, there are numerous reasons why people should draft wills. Primarily, drafting estate planning documents such as wills and trusts is an act of love for surviving family members. By planning during life, a person saves surviving loved ones the hassle of trying to figure out the deceased's affairs while they are mourning. A will also can help prevent family members from fighting with one another over who gets which possessions because the will distributes the assets.

On the Net2016-12-13T20:33:40-08:00August 29th, 2011|Estate Planning, Wills|

Estate Planning With A Second Marriage

NJ.com: Today Your Legal Corner provides information on second marriages and estate planning.

Losing a parent is devastating. It is said this experience begins the next chapter in our life and that of the surviving parent.

When the surviving parent finds a new special someone, it can create mixed emotions for the family. On the one hand, you are happy to see dad or mom finally getting on with life, experiencing a second bite of the apple, with a fresh taste for life.

At the same time, you're suspicious of this new friend. Acceptance of the relationship brings a feeling of disloyalty to the deceased parent. All of these emotions are common and normal.

With second marriages and estate planning, staying actively engaged with your parent will minimize incidents of fraud or undue influence by third parties.

Everyone has the ability to protect their own assets through proper estate planning.

On the Net2011-08-29T08:25:11-07:00August 29th, 2011|Estate Planning, Prenuptial Agreements, Trusts, Wills|

Most British Won’t Discuss Wills

Estate of Denial: The vast majority of Brits will not talk openly about inheritance, despite the fact that 40 per cent of people expect to receive one.

According to new research from Aviva, two-thirds of those surveyed would not discuss inheritance openly with their parents.

However, 76 per cent of those questioned said that they would be happy for their parents to use equity from their property to fund their retirement – even if it meant reducing their inheritance.

Retirement director at Aviva Clive Bolton said: “Despite the British taboo of discussing inheritance, it seems that three-quarters of Britons are happy for their parents to use the cash in their property to enjoy a better lifestyle in retirement.”

On the Net2016-12-13T20:33:44-08:00August 29th, 2011|Estate Planning, Wills|

Estate Planning Makes Life Easier For Those You Leave Behind

CBS Boston: Catastrophes happen! Natural disasters! Accidents. Illness! Old age.

No one gets out of this world alive, but we can plan to make it easier on those we leave behind. If you have accumulated assets or you have minor children you need to do some estate planning. The more complicated your life the more complicated your planning needs to be.

Experts estimate that less than 35% of individuals have wills. This is one thing people procrastinate about, especially parents with young children. 75% of parents with young children have not done the estate planning that could keep their children safe if something should happen to the parents. The parents need a will naming guardians for their children if something should happen to them.

On the Net2011-08-26T09:39:30-07:00August 26th, 2011|Estate Planning, Wills|

New Estate Planning Litigation: Defining “Spouse”

Estate of Denial: One obituary described Ellyn Farley as a happy, studious, pet-loving attorney married to her spouse Jennifer Tobits and only “reluctantly” wearing dresses to attend Mass. The other described her as a fierce litigator and champion to the underdog, survived by her parents, her brother, various aunts and uncles, a godmother, and “good friends for life who will be in her heart forever, Jennifer and Nancy, of Chicago; and numerous cousins and other devoted friends.”

The first was published in the Chicago Tribune, the city where Farley lived with her spouse Jennifer Tobits. The latter was published in the Roanoke Times, in Virginia, where Farley grew up.

The first was drafted by one of the lesbian couple’s friends and was reviewed and edited by Tobits. The latter was coordinated by Farley’s parents who, according to Tobits, did not consult her about its contents.

The first makes clear that Farley was married to a woman; the latter scrubs that reality out of her life story.

“This is the new era,” said Shannon Minter, legal director of the San Francisco-based National Center for Lesbian Rights. “We are all familiar with hearing stories about parents stepping in and not honoring their children’s relationships and trying to take all the assets. Now that so many couples are in marriages or civil unions or domestic partnerships, it’s still happening; but we have a degree … of legal protections that we didn’t have before.”

On the Net2011-08-26T09:06:28-07:00August 26th, 2011|Estate Planning, LGBT Planning|

Entertaining Will Challenge

Wills, Trusts & Estates Prof Blog: Stan Rule (Attorney, British Columbia) posted a blog on the Rule of Law Bolg on August 20 entitled Estate of Watts. The blog discusses a humorous will challenge
involving a woman’s bequest to her husband. The blog is below, in full:

Although I don’t recommend taking shots at family members from the grave in your will, it can make for entertaining reading.

I came across a case from New Brunswick, In re Estate of Watts, 1933 CarswellNB 9 (S.C. App. Div.) in which the will-maker left to her husband the sum of $1 “as memento of the manner in which my husband treated me during our married life.”

Her husband was not overly pleased with the will. After her death he challenged it in court. He argued that she was under an insane delusion that he had been unfaithful to her, and accordingly that she did
not have the mental capacity to make the will. If the Court found that the will-maker was influenced in her decision to essentially disinherit her husband by an insane delusion about him, then she likely was incompetent and the will invalid. There was evidence that she did indeed believe that her husband was
unfaithful.

On the Net2016-12-13T20:33:44-08:00August 25th, 2011|Estate Fights, Wills|

How Do Parents Keep Control Of Assets Passed To Children?

Wealth Counsel Estate Planning Blog: Parents want to be in dictatorial control. However, trusts must be irrevocable for estate tax and asset protection planning purposes. Many people get turned off when the word “irrevocable” is raised. We must be able to assure them that they can “have their cake and eat it too.”

Magic Formula. The goal of planning is to “own nothing and control everything.” The magic formula is “control.” “Own” looks and sounds like an English word, but it is not. It is a legally defined concept. By contrast, “control” is what it seems to be. To paraphrase U.S. Supreme Court Justice Potter Stewart, (who was describing hard core pornography), you know it (control) when you see it.

Children’s Trust. So how do parents keep control? The first element in any planning is a children’s trust. We don’t want to deal directly with the children. Children may start off as nice people, but once the parents are in their 80s, the children will be convinced that they know more than their
parents. So a properly structured children’s trust will give the parents continuing control.

On the Net2017-10-07T11:14:45-07:00August 25th, 2011|Estate Planning, Trusts|

Special Needs Trusts

World News Report: Relatives of people with special needs often worry about who will care for their
disabled loved ones when they are gone. One way that concerned family members can plan for their disabled relatives' futures is by creating a Special Needs Trust. But, people need careful estate planning
to make sure that such trusts do not disqualify their loved ones from receiving public benefits, either at the time they establish the special needs trust or in the future should the trust beneficiary get money from another source.

Special Needs Trusts

A special needs trust is a flexible estate planning tool that can fund a broad array of things under the term “special needs,” including medical care and products as well as a variety of measures that enhance quality of life like adaptive equipment for communication, adapted vehicles, special education or
training and higher-expense nursing homes.

On the Net2017-10-07T11:14:45-07:00August 25th, 2011|Special Needs Trusts|

Do You Need A Power Of Attorney?

Barrington Patch: Powers of Attorney are important components of most estate plans. Today’s column explains the purpose of two types of Powers of Attorney — the Power of Attorney for Property and the Power of Attorney for Health Care.

Hello Lisa, My wife and I recently met with a lawyer to have our wills done. The lawyer told us we should also have “Powers of Attorney.” We don’t understand why. Could you please explain why we should have these Powers of Attorney? Thanks, Joe

Dear Joe,

Thanks for your question. Many people share your confusion about the purpose of a Power of Attorney (POA). First of all, it is important to understand that there are two different types of POA’s that are central to most estate plans.

On the Net2011-08-24T09:57:14-07:00August 24th, 2011|Estate Planning, Powers of Attorney|

Estate Planning And Medicaid Planning

My San Antonio.com:

Dear Mr. Premack: My wife has been gradually getting worse dementia, and I’ve finally had to place her into a nursing home. Her care costs over $5000 each month, and while we are not entirely without resources, this is far beyond what we can afford. We have about $200 thousand in savings, our home is paid off, and between us we have about $2800 each month income. She named me as agent in a durable power of attorney last year, and we each have Wills leaving everything to each other. Is there any
way that we can qualify for help to pay the nursing home bill? – T.R.

There are only three ways to pay for the medical care your wife needs. First, you can pay from your own income and assets, which is honorable and in fact necessary. Second, you could have purchased long-term care insurance, which would then be obligated to pay for a portion of her nursing home care. Third, you can seek taxpayer assistance from Medicaid.

On the Net2011-08-24T09:54:37-07:00August 24th, 2011|Estate Planning|

Importance of Estate Planning Highlighted By Death of Real Housewives’ Husband

On Wall Street: Russell Armstrong was the 47-year old husband of “Real Housewives of Beverly Hills” cast member Taylor Armstrong. Tragically, Russell committed suicide on August 15th about one month after Taylor had filed for divorce. Russell was reportedly distraught over how the Bravo TV Show was going to portray him in this upcoming season. His unexpected suicide took his whole family by
surprise.

The already sad situation turned even uglier a few days ago when attorneys for the family members began to argue, publicly, about his funeral. Russell's attorney told numerous media outlets that Taylor had not told Russell's parents or sister about the burial arrangements. In fact, he blasted Taylor and her attorney saying:

“I am deeply disgusted that Taylor would use her family law attorney to create cover, by lying to me over a period of days, on her behalf in writing that she would share the funeral location and time with my client's mother, father, sister and other family members. Instead, no one has contacted them and
it is apparent now that Taylor is using this death to further injure the Armstrongs. As if filing for divorce was not enough, this act of cutting out his mom, dad and sister is, frankly, despicable.”

Taylor's attorney, of course, refuted these reports. Taylor originally said she wanted to bury Russell in a cemetery in Los Angeles, but the family insisted he be returned to them in Texas.

On the Net2017-10-07T11:14:44-07:00August 23rd, 2011|Estate Fights, Estate Planning, Rich & Famous|

Assets Not Covered In Your Will

Wills, Trusts & Estates Prof Blog: Even if an individual creates a well drafted will, he or she may unintentionally disinherit intended beneficiaries from large portions of his or her estate by failing to take proper steps regarding non-probate assets.

One such asset is a 401(k) plan. A surviving spouse is automatically entitled to the entire account, regardless of what a will states. If an individual wants the account to pass to someone other than his or her spouse, the spouse must file a written statement waiving his or her rights to the account. Additionally, a prenuptial agreement will not resolve this issue because, until a person is actually married, he or she cannot give up his or her spousal rights to a 401(k).

Richard Keyt2016-12-13T20:33:44-08:00August 19th, 2011|Beneficiaries, Estate Planning|

Guardianship Explained

Times Beacon Record: The facts: My aunt is widowed and living alone. Lately it has become clear that she cannot continue to live independently and cannot handle her finances. She is confused and does not appear to be eating well or bathing regularly. Unfortunately, there are no family members in a position to take care of my aunt. She does not have a will, power of attorney or health care proxy.

The question: Should I begin a guardianship proceeding to have someone appointed to make decisions about my aunt's living situation and her assets? What happens if there are no family members or friends who can serve as guardian?

The answer: Although every situation is different, beginning a guardianship proceeding is generally appropriate when it appears that a person is likely to suffer harm because she cannot provide for her personal and property needs and cannot understand and appreciate the nature of her functional limitations. From your description of your aunt's condition, I believe it would be appropriate to commence a guardianship proceeding.

On the Net2016-12-13T20:33:44-08:00August 19th, 2011|Guardianship|

The Problem With Do It Yourself Wills

Forbes: A will is one of the most important financial planning documents, especially as you move toward retirement. Yet an astonishing number of people of all ages still don't have one.

Psychological factors are at play–it's extremely stressful to confront one's own mortality. Plus it's painful to spend money on estate planning, because you don't live to reap the benefits even if you know your heirs will.

Purveyors of do-it-yourself books, software and online forms are trying to change that. The cookie cutter documents they sell to help you generate a will cost a fraction of what many lawyers charge. Fueled by the technological revolution, these products have proliferated in recent years, with at least a dozen offered online, plus many books and assorted boxed software.

This development makes me cringe–so much, that I won't mention specific products in this article, because I don't want any of them saying in promotion materials, “As featured in Forbes.”

Why am I strenuously opposed to do-it-yourself wills? There are just so many things that can go wrong–from the wording of the document, to the required formalities for how it must be signed and witnessed before it can be valid. As the author of a consumer-oriented book, Estate Planning Smarts: A Practical, User-Friendly, Action-Oriented Guide, I make it a hobby of collecting DIY horror stories. And I've gathered some doozies. As Timothy E. Kalamaros, a lawyer with his own practice in South Bend, Ind., says, using a DIY will is like “pulling your own tooth with a pair of pliers instead of going to the dentist.”

On the Net2016-12-13T20:33:44-08:00August 18th, 2011|Do It Yourself - Fail, Estate Planning, Wills|

How To Operate Your Trust

Wealth Strategies Journal: Here's part two of the exciting, can't catch your breath topic, how to operate your trusts. Many folks seem to think if they've signed a trust they've done the deed, but as the Carpenter's song goes: “We've only just begun.” Just like a good golf swing, follow through is essential to achieve any of your personal, tax, legal or other objectives. The second part of this article highlights a few of the myriad of matters to address. If you don't heed the follow up warning, you'll be relying on the line from the Carpenter's song: “A kiss for luck and you're on your way,” when the IRS or a claimant come's a'knockin. Your estate planner will be singing the Buddy Holly words back at ya: “Don't come back knockin' at my offices' closed door.”

On the Net2017-10-07T11:14:44-07:00August 18th, 2011|Trusts|

Estate Planning For Ladies

Forbes: Going to a woman’s undergraduate college taught me that it’s okay for women to be smart. When I went to Columbia Law School, I found myself explaining that to a very brainy, beautiful classmate who told me she got more dates if she acted dumb. That was in 1978.

Women have come an enormous distance since then. Currently they serve as CEOs of 14 Fortune 500 companies, according to Catalyst. Among them: Indra K. Nooyi at PepsiCo; Irene B. Rosenfeld from Kraft Foods; Patricia A. Woertz of Archer Daniels Midland; Ursula M. Burns of Xerox, and Carol A. Bartz of Yahoo.

Still, for all we have achieved — with our careers, managing our finances, sharing child rearing and other household responsibilities — we’re not as savvy about estate planning as we ought to be. In fact, a recent survey by EZLaw suggests that women care more about losing weight than about protecting their financial assets.

Does this mean women have more will power when it comes to their waistlines, than when it comes to estate planning?

On the Net2016-12-13T20:33:44-08:00August 17th, 2011|Estate Planning|