Archive for the ‘Advanced Health Care Directive’ Category

The Problem With Michigan Trust Mills

Written by Christopher J. Berry, Esq. on October 31, 2008 – 10:03 am -

A financial planner friend of mine had me review an estate plan of a couple the other day.  This couple had their estate plan done by one of the many “trust mills” in Michigan.

By trust mill, i mean a set up where they only meet their attorney once (if at all), and there is little to no customization done for an individuals estate plan.  In other words, it is just a fill in the blank estate plan.

Typically, people are put into one of these “estate plans” by unreputable financial professionals who will tell potential clients that they can have a trust based estate plan with unlimited revisions for a set price.  One way they do this is offer an “Estate Planning Seminar” where they will have an example trust in a pretty binder, then tell everyone they can have their plan done for a set fee, say $2250.  This epitomizes a one-size fits all approach to estate planning, that doesn’t take into account the actual needs of the client.  Typically, salesman use this trust as a loss leader to sell clients annuities.

As an estate planning attorney who actually values his clients, there is no way i would be able to quote a fee with out knowing exactly what the clients goals are and how complex it will be to meet those goals.

Back to the couple I met with.  In addition to the usual problems with trust mill prepared plans, they also had three very important issues that I raised with them.

First, as a married couple, their residence was funded into the trust.  In Michigan, we have what is called tenancy-in-the-entireties, which is a special designation created by the state for real property.  This status gives married couples added benefits against creditors, predators, the IRS, and lawsuits.  Well, someone, either the financial professional or attorney, told the clients to fund the residence into the trust, thereby destroying the added protection the couple had as married couples.

Second, the couple both had what is called “springing” powers of attorney.  This is a counseling question to determine the type of financial power of attorney to use.  After counseling the clients, they realized that they were in the wrong type of financial power of attorney.  Luckily, they have not yet had to rely on it.

Third, their healthcare directives were out of date and not valid.  This attorney who prepared their documents promised to stay in touch every year to review their estate plan (which is supposed to be free, including amendments).  Well the attorney never did.  So, I pointed out the changes necessary to bring the healthcare directives up to date.  Our firm has a systematized membership program called Foundations that clients can opt into that will maintain their plan through the years.

The good news, the couple was able to see the mistakes and correct them before they had to rely on the faulty documents.  The bad news, the couple is going back to the original attorney to have the documents corrected, since they have free changes for life.

You get what you pay for…

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Posted in Advanced Health Care Directive, Estate Planning, Foundations, Living Trusts, Personal Reflections, Powers of Attorney | No Comments »

Terri Shiavo Part 2?

Written by Christopher J. Berry, Esq. on July 23, 2008 – 6:21 pm -

Most people remember the Terri Shiavo situation down in Florida where there was a fight to see who would make medical decisions for an incapacitated woman. If you remember, Schiavo suffered a seizure in 1990 that left her in a persistent vegetative state, kept alive only by a feeding tube. Ms. Schiavo had no living will. Eight years later, Ms. Schiavo’s husband asked the court for permission to have the tube disconnected. Her family fought him, claiming that there was a chance for recovery. Well, there may be another similar situation happening according to the Palm Beach Post.

Karen Weber, apparently did not have a living will when she suffered a seizure in November of last year. In this case, the courts have not ruled on Ms. Weber’s condition; she is paralyzed but breathes on her own. Her husband believes that his wife did not and would not want her life prolonged artificially, but again, there is not advanced directives laying this out.

To read the story, click here.

If the Shiavo case was not lesson enough, here is another example where completing your advanced directives is a necessary estate planning step to protect your wishes and keep yourself out of the court system.

To learn more about the Shiavo cases, click here.

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Posted in Advanced Health Care Directive, Estate Planning, Michigan Probate, Powers of Attorney | No Comments »

Basic Estate Planning

Written by Christopher J. Berry, Esq. on July 23, 2008 – 2:14 am -

People are afraid of lawyers. People are afraid of death. Put them together and you have an estate planning lawyer. Many people would would rather goto the dentist then think about estate planning and what’s involved. Add to the confusion that when people hear the word “estate” they think of rich, extravagant homes in the Hamptons or in Orange County.

Estate planning is a bit of a misnomer. What it really refers to is handling your affairs during incapacity and after you pass away.

There are two major components to the services an estate planning lawyer provides. First, the counseling involved. Anyone can print of a document off the internet and fill in the blanks. Estate planning lawyers provide real value in the counseling involved in how to handle family situations, how to handle financial situations, and provides options and solutions to address estate planning needs.

The second component is preparing individualized estate planning documents, based off the counseling. Typically, if Federal Estate Taxes are not an issue there are four major sets of documents that are prepared. These are:

  1. Will
  2. Living Trust
  3. Durable Powers of Attorney
  4. Advanced Health Care Directives

The Will actus as a back-up to your trust and provides for guardianship of minor children.

The Living Trust is the “suitcase” that holds all the assets that pass to your beneficiairs and avoids the probate system.

The Durable Powers of Attorney provide instructions and nominates an individual to act as a fiduciary and interact with financial institutions if you become disabled.

The Advanced Health Care Directives nominates an individual to make medical decisions if you become incapacitated.

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Posted in Advanced Health Care Directive, Estate Planning, Living Trusts, Michigan Probate, Powers of Attorney, Wills | No Comments »