Archive for October, 2008
Michigan Estate Planning Questions to Answer
Written by Christopher J. Berry, Esq. on October 15, 2008 – 8:41 pm -Here are some common questions that can be answered through proper Michigan Estate Planning:
- Who will administer your estate after you pass?
- Who will be the guardian of your minor children?
- How will federal estate tax and other taxes be minimized?
- How will your trust or personal representative pay any death taxes if owed?
- How should your spouse and you hold title to assets?
- If you cannot care for yourself, who will take care of you?
- If you cannot manage your estate, who will do so on your behalf?
- Who will receive the proceeds of your insurance and retirement benefits?
If these are questions that you would like to answer contact our office at (248) 865- 4700 or email at info@witzkeberry.com.
Tags: Estate PlanningPosted in Estate Planning | No Comments »
Estate Planning Mistake to Avoid!
Written by Christopher J. Berry, Esq. on October 15, 2008 – 8:34 pm -
Here is a quick tip and a common mistake I see many people make with regard to their estate planning.
Are your children on your bank accounts or deed to your house? If you are you could be doing a disservice to yourself and your children!
Holding any asset with anyone (other than a spouse) can be problematic and horrific when it’s your home. Many well intentioned parents in an attempt to avoid probate add their children to title of their home as joint tenants.
When this happens, the question that needs to be asked is: “is it worth possibly having my house sold out from under me, while I still plan on living in it?”
By adding another person to your assets you are opening yourself up to the claims against the other, including creditors, predators and the IRS. For example, say you child is involved in an car accident that maims another. Well when your child is sued, YOUR house may be a countable asset if you added your child to the deed as joint tenant.
Quite the scary proposition!
Another important consideration is income tax. Let’s look at an example. Say parents own a $200k home. Well, adding two children would be a $50k gift. Years go by, the parents pass and laterthe house sells for $400k. Well, those kids now have a basis of $50k instead of the $400k if they had inherited the property. They are each on the hook for $150k worth of income tax owed to the IRS! Because thay probably did not live in the house, they are also going to miss out on the $500k exemption that married couples receive for selling the home.
Estate planning is more than just preparing documents, it takes a holistic approach to an individual’s situation and an analysis of many factors.
Tags: Estate Planning
Posted in Estate Planning, Financial Planning | 1 Comment »
An Estate Built for Special Needs
Written by Christopher J. Berry, Esq. on October 9, 2008 – 12:50 pm -The Wall Street Journal had an interesting article regarding how to plan for special needs children. As our office does this type of planning, it is good to see the word getting out that this type of planning is a necessity.
You can find the rest of the article here:
http://online.wsj.com/article/SB122351155944317491.html
A key compenent when our office prepares a special needs trust is the letter to caregivers. The article talks about this concept in detail:
Letters for Caregivers
There are some other key steps families with special needs should take. Parents should create power-of-attorney or guardianship documents for finances and health care, naming themselves as their child’s agent or guardian when their child turns 18. Without this formality, parents of kids over 18 may not be able to have access to their child’s medical records or make health-care or financial decisions, says Boston lawyer Harry S. Margolis, the co-founder of the Academy of Special Needs Planners.
It’s also smart to create a “letter of guidance,” a document spelling out everything another caregiver should know about their child’s special needs, including medical diagnosis, treatment and medications, specific likes and dislikes, and food preferences or aversions. “You know things about your children that no one else on this earth knows,” says Michael Gilfix, a Palo Alto, Calif., lawyer who does a lot of special-needs planning. “This includes little things, like what breakfast food makes them happy or what breakfast food makes them really angry.”
Ms. Valentine, a client of Mr. Gilfix, recently wrote a letter of guidance for her son, Gabe. The document describes how Gabe is a huge San Francisco Giants fan, so any caregiver should make sure he gets tickets to home games. He doesn’t like ice cream or cake, but likes pizza. His epilepsy medication affects his teeth, so the letter recommends that he get his teeth cleaned regularly. “He actually loves the dentist,” she says.
If you have any questions on how to plan for a special needs child, please contact our office at (248) 865-4700.
Tags: Estate Planning, special needs trustPosted in Estate Planning, News | No Comments »
Tips for Selecting a Michigan Estate Planning Attorney
Written by Christopher J. Berry, Esq. on October 9, 2008 – 10:43 am -- Identify prospective attorneys. Talk to people who work with estate planning attorneys and friends and family who may have done estate planning.
- Schedule Screening Interviews. Estate planning is an important process and you need to feel comfortable in selecting an attorney to work with you and your family.
- Determine if the attorney is qualified. At the first interview, ask basic questions, for example : What percentage of your practice is devoted to estate planning? What types of clients have you worked with? Ask for references.
- Understand the Network of professionals. Estate planning requires a holistic approach that involves a team of specialists: your attorney should not be a lone ranger.
- Discuss Fees. You want someone that has a fee schedule that you are comfortable with. Like many things in life, this is an area where you get what you pay for.
- Contact any references given. Was the attorney proactive? Responsive? Any regrets or concerns?
- Prepare for the second interview. Ask follow-up questions and bring personal documents you wish to discuss, such as current estate planning documents or insurance policies.
- Select your Michigan lawyer. You want someone who is qualified, with whom you are comfortable, and has a network of professionals that he or she works with.
- Put it in writing. Have a written fee agreement or retainer agreement to ensure that your expectations are met.
Posted in Elder Law, Estate Planning | 2 Comments »
Michigan Probate; Problems
Written by Christopher J. Berry, Esq. on October 4, 2008 – 3:53 pm -Currently our office is probating the estate for a personal representative who is outside the state of Michigan. The client has already expressed her dismay at the probate system before we even began the process. Our office tries to make the administration and probate process as easy as possible on our clients. But we cannot change the fact that it is time consuming, stressful, and puts both our firm and clients at the mercy of the Michigan courts.
There is a better way, and it is through using a living trust based estate plan to avoid the whole probate process. The personal representative in this situation would have had a much easier, quicker and less stressful experiance if the deceased had opted for a trust based plan instead of a will based estate plan. Remember, a will does not avoid the probate process, but instead is a ticket to the probate process.
Tags: Estate Planning, Living Trust, Michigan Probate, WillPosted in Estate Planning, Living Trusts, Michigan Probate, Personal Reflections, Wills | No Comments »
