9 Mistakes that Tear Families Apart

Mistake #1: Relying on the Law.  If you do not set up an estate plan, upon your death your property will be distributed according to the laws of your last state of residence.  Often, the law will require the probate judge to give your property to someone other than the people you would have chosen.

Mistake #2: Relying on a Will.  If your estate plan consists only of a Will, your heirs may face many costly problems such as probate and conservatorship proceedings.  A Will is the most common estate planning tool, but it is usually not the best tool to use.

Mistake #3: Relying on Community Property laws.  Relying on the Community Property laws is a position many clients take.  However, your property will still have to go through probate on the death of the spouse.  Also, Community Property ownership requires a conservatorship if a spouse is incapacitated and the home needs a mortgage, home equity line, or to be sold.  Relying on the Community Property laws is not a good estate plan.

Mistake #4: Relying on Guardianships.  These Court supervised proceedings for addressing your physical or mental incapacity are costly, time-consuming and horribly burdensome.  Your properly set up Revocable Living Trust, as well as Powers of Attorney, Durable Powers of Attorney for Health Care, and Physician’s Directives and Releases avoid this issue.

Mistake #5: Relying on the small estate affidavit or informal administration procedure to avoid probate.  Most people assume they have fewer assets than they actually have.  In Wisconsin the small estate exemption that avoids probate is permitted only for estates consisting of less than $50,000.

Mistake #6: Relying on a gifting program as your way of avoiding probate. The law allows you to give away your property at a rate of $14,000 per person per year.  A married couple can give $28,000 per year to anyone they choose without gift tax consequences.  While this is an effective way to reduce the size of your estate, trying to spend your last dime on your last day is difficult to put odds on, plus you lose control of the assets you have given away, and beneficiaries get total control over everything that has been given to them.

Mistake #7: Relying on the Courts to take care of your child’s finances.  If you die intestate (with no Will) or with only a Will, and your property passes to your minor child, the Court will put your child’s money into a Court-supervised guardianship requiring at least annual accountings to the Court.  Naturally, this may require hiring CPAs to prepare accountings, and lawyers to file those accountings with the Court, plus filing fees, all of which comes out of the inheritance.   It also means that the Court determines the person who will serve as guardian of the property, who may not be the person you would have chosen.

Mistake #8: Relying on a form kit for your Will or Living Trust.  One size does not fit all because no two people or families are alike.  From your family’s needs and dynamics to its personalities and values, can you imagine any form kit ever being suitable for any family?  If you use a form kit, you’re asking for problems.  If your will is not properly executed, it will not be valid.  The only estate plan you can rely on is one that is custom prepared by a qualified estate planning and asset protection lawyer.

Mistake #9: Relying on the wrong attorney.  Most attorneys know very little about estate planning.  What’s more, even some estate planning attorneys don’t put much time or energy into comprehensive protections for your family’s unique circumstances.  That’s why I urge you to choose an estate planning attorney who has the primary focus, mission and purpose to help you achieve your family’s estate planning and asset protection goals:  protecting, preserving and passing on more of what you’ve worked for.

If you’d like to ensure that you maximize the resources available to your loved ones and keep your family out of Court and out of conflict, schedule a Family Life and Legacy Planning Session.™ We can review your existing plan and help you make adjustments that will help you achieve your goals.

This article is a service of The Estate Planning Group and Davidson Law Office, LLP, your Life & Legacy Planning Lawyers, who believe in developing trusting relationships with families for life. We don’t just draft documents, we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.

How can I preserve my assets for my kids and loved ones?

With tax time well behind us, you may be thinking you did well by minimizing what you paid to Uncle Sam and your state in taxes, so more can go to your family.  Every year around tax-time, we’re reminded of how complicated maximizing your money and minimizing tax liabilities can be - and for many people, this seems to be the singular focus for how to preserve assets for loved ones.

Unfortunately, we don’t get much in the way of real information about really preserving our assets through estate planning.  And, regrettably, many of us simply don't think about it, or maybe think we don't have enough to make a difference.

Simply put, this is Penny Wise and Pound Foolish - Your family will likely lose more in the costs of estate administration than you can ever overcome with annual tax tricks. 

Truth is, if you have people you love and any assets at all in your name, you do have an estate and it is worth preserving for the people you love. In some cases, that may mean keeping them out of court and out of conflict, if anything happens to you. (Did you know that the biggest family fights happen over the smallest sums of money or even the personal effects of a person who has passed on? Let’s keep that from happening to your family!)  

If you’re concerned about maximizing the amount your heirs receive and minimizing the amount received by governments, there are several steps you can take.

First and foremost, keep your family out of Court. It’s unnecessary, extremely expensive and almost always public. Consider using a Trust to make it easy to handle your assets if you become incapacitated or when you pass on. 

Second, ensure legal documents are in place for trusted family or loved ones to take care of financial, legal and health care issues in the event of any incapacity.  An incapacity without simple legal planning in place can be devastating to a family, both financially and emotionally. 

Third, while most Americans need not worry about the Federal estate and gift tax ($5.49 million in 2017), if you have an estate near or above that level ($10.9 million for married couples) you need to implement tax minimization strategies to avoid the extreme estate tax hit your heirs will experience. Some will need to think about State taxes, as well, if you live in one of the 20 states that impose them. (Wisconsin does not.) 

If you’d like to ensure that you maximize the resources available to your loved ones and keep your family out of Court and out of conflict, schedule a Family Life and Legacy Planning Session.™ We can review your existing plan and help you make adjustments that will help you achieve your goals. 

This article is a service of The Estate Planning Group and Davidson Law Office, LLP, your Life & Legacy Planning Lawyers, who believe in developing trusting relationships with families for life. We don’t just draft documents, we ensure you make informed and empowered decisions about life and death, for yourself and the people you love.

10 Estate Planning Questions to Ask Yourself

We are all busy, right? We have things to do, places to visit, and people to see. So, it is understandable why people do not often think about what would happen in an emergency, where something happens and you can no longer do things you want, visit the places you plan, and see the people you want.

While a proper estate plan cannot avoid these issues, it can leave you better equipped to address these situations when they arise.

Here are 10 estate planning questions to get you started. How many of these questions can you answer, "Yes" to?

1.    Have you appointed a trusted financial decision-maker for financial decisions during your life?

2.    Have you appointed someone who knows your health care wishes if you cannot communicate them?

3.    Have you shared your health care desires with your health care decision-maker?

4.    Do your beneficiary designated-assets, reflect your current wishes?

5.    Would someone know how to access your online accounts if they need to access them?

6.    If you wish to avoid the probate process, does your current plan accomplish this?

7.    Have I planned for a potential stay in a nursing home?

8.    Have you shared your wishes with your family, so your desires will be followed upon your death?

9.    Will your medical records be accessible to your family if they need to view them?

10. Does your current plan reflect your current wishes?

Proper consideration of these factors now can avoid needless time, effort, and headaches, for your loved ones.

Take the first step now and talk with an estate planning attorney today about putting in place a plan, so you can answer "Yes" to all ten questions!

I was nominated as a Personal Representative in a Will, now what do I do?

A loved one has just passed away and someone tells you the decedent nominated you as the Personal Representative of their Estate in their Last Will and Testament. What does this job entail? What authority do you have? What should be your first steps?

In a nutshell, the role of a Personal Representative (also sometimes called an "Executor") is to oversee the gathering of a decedent’s probate assets, pay all necessary creditors, and make distributions in line with the terms of the Last Will and Testament. The Personal Representative is the "manager," overseeing the entire probate process.

A Last Will and Testament should list a particular person(s) to act as Personal Representative. If a will was never executed and no other estate planning documents were completed, an interested person, usually a close friend or family member, petitions the Probate Court to be appointed.

In either case, the Probate Court determines whether to approve the individual, and if a bond will be required to be paid by the nominated Personal Representative as collateral against the value of the probate assets.

If approved by the Probate Court, Domiciliary Letters will be issued to the Personal Representative. Domiciliary Letters serve as formal proof that the Personal Representative has the legal authority to act. Often banks, credit unions, and other financial institutions require this Letter prior to releasing any information.

Throughout the process of administering an Estate, the Personal Representative will also want to keep a close eye on the deadlines mandated by the Probate Court. Deadlines often include: filing a required Notice to Creditors, filing an Inventory of the decedent's probate assets, and filing a final Estate Account listing all the expenses and payouts to beneficiaries. Sample blank forms can be found on the Wisconsin Court System website: https://wicourts.gov/forms1/circuit/index.htm

The Personal Representative is also responsible for paying any outstanding bills, selling any estate assets, submitting final tax returns, and more. There are often specific time deadlines complicating each step of the process of administering an Estate.

It is not uncommon, given the steps involved, to have a probate proceeding open anywhere from 9-15 months, or longer.

If you have questions or concerns about the probate process or your job as Personal Representative, please click here. We are more than happy to guide you through the probate administration and what to expect as a personal representative.

Protecting Your Minor Children from the Unexpected

Parents often cite a child’s birth as one of the happiest days of their life.  The child will bring many moments of happiness to your lives and undoubtedly a few trying moments, too.  However, as parents, you also need to consider who would care for your child if you no longer can.  Estate planning can offer some valuable assistance.

A simple will executed by each parent is a common method used to protect minor children.  A will is the only legal avenue (without court intervention) where parents can nominate a legal guardian for children under 18.

So, who should you nominate as a guardian?  Beyond recommending someone you trust and respect, here are some other factors to consider:

·         Guardian’s Location—Will a guardian’s location require a change of schools for your children; will the location allow your children to remain close to existing friends and family?

·         Guardian’s Values—Does the guardian share your core beliefs, a similar philosophy in raising children, religious views, etc.?

·         Guardian’s Suitability—If a guardian has children of their own, could they care for your children too; does the child already have a good relationship with the prospective guardian?

Once a guardian is chosen, the next question is how financial assets should be held to best benefit your children.  A testamentary trust, formed in a parent’s will, is a great tool to hold such assets.

This type of trust secures assets left for your children and can specify an age or ages for asset distribution.  Many parents distribute a percentage of a child’s share every few years, minimizing potential excessive spending of an inheritance at one time.  Without a testamentary trust, all assets are distributed when the child is no longer a minor.  To oversee this trust, you may nominate the above-named guardian, a financial institution, or an entirely different person/entity.

Protections for younger children are absolutely vital. Whether that means completion of a simple will or other estate planning options, this issue deserves consideration by you and your family.

Who do we give the Packer Season Tickets to?

Green Bay Packers Season Tickets. As of the writing of this article, the current wait list is around 120,000 people. So, it is easily understandable why families with tickets want to pass them on to loved ones.

But for some, the answer to who to give the tickets to is a challenging decision. We recently had someone come to see us who was really struggling over who to give his tickets to because he did not want to appear to favor any of his children. Thankfully though, he is making this difficult decision now.

All too often, inadequate instructions can cause conflict among family members and yes, sometimes even lawsuits (See Milwaukee Journal Sentinel Article, "Brother sues brother over Packer Tickets.").
While these are hard decisions, understanding the rules can streamline the process.

Green Bay Packer Ticket Policy requires that the owner of every season ticket be either an individual or a business (no co-ownership allowed). This bears noting because if you have multiple beneficiaries, they may not agree on a single individual owner and in the absence of agreement, no transfer occurs.

Without any direction from a season ticket holder, upon their passing, season tickets will likely first go to a surviving spouse, and if no spouse, then to surviving children. Remember, if the surviving children, cannot agree on a single child owning the tickets, no transfer takes place.

If you have put in place a will or a trust, you can specify who you desire to take ownership of the Packer tickets. Importantly, your will or trust can also list alternate beneficiaries, if your first choice, passes away before you.

In endeavoring to assist individuals, the Packers organization has also put together a Season Ticket Transfer Form to memorialize your desires and pass your tickets to your chosen beneficiary.

For more tips and suggestions on ensuring all of your assets, including your Packer tickets, pass smoothly to your chosen beneficiaries, come to our final seminar of 2016 at the Heart of the Valley Chamber of Commerce Building in downtown Kaukauna on Saturday, December 3^rd at 10:00 am. Refreshments will be provided. For information on how to sign-up, click here!

The Estate Planning Group, Appleton, Kaukauna, Kimberly and Green Bay Estate Planning Attorneys