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I had a client a few years back who had me draft a trust for them, one that needed its own separate tax return. The client also hired me prepare the tax return for the trust after the first year of the trust’s existence. After the next year, the client decided that I was too expensive in preparing the taxes and hired someone else to do the tax preparation. I didn’t think much of that, until the client called and was very upset that the trust I created was so expensive on taxes. Apparently the other tax preparer had calculated tax on the value of all assets contributed to the trust instead … [Read more...]
So, You Didn’t Have a Will? Now What?
Let me start this blog by being very upfront: I do not handle probate cases, and I don’t represent anyone in probate. However, I must know about the probate rules, and what happens in the probate process since I work to either minimize what goes through probate, or to make the probate process easier on those who stand to inherit property after someone has passed away. That’s what estate planning is all about - setting up a plan that is simple to execute once someone has passed away. If you want to avoid all of what you see below, set up your own estate plan. Sometimes the plan involves … [Read more...]
Where there’s no Will, There is a Way
When someone asks me, “Well, if I set things up right, I don’t even need a will or a trust, right?” I often wonder if the person asking the question wants an actual answer, or just wants me to agree with them. I think I understand what the person is asking, but I am not sure why someone would want me, an estate planning attorney, to simply agree that the work I normally do serves no purpose. Perhaps it is because people want to look for easy ways to do things, or they don’t want to be involved with the courts after a loved one or relative passes away. Or, perhaps people just don’t want to … [Read more...]
7 Reasons Why Estate Planning is Cool
I attend many networking meetings. At these meetings, I am generally invited to share a 30 - 60 second “commercial” of what I do and what I am looking for in a client, or a referral. I have several versions of this introductory speech, but one of them goes something like this, “My name is Michael Bailey, and I own and operate my own law firm. I practice in the area of estate planning law, which is dreadfully boring, but only when I am working there.” This generally gets me a laugh, and then I go on to explain that what I do is not necessarily exciting and fun, but rather, necessary. In … [Read more...]
7 Things About End Of Life Planning Your Dad Wants To Know
I’d like to start this blog with a story. Recently a 70 year old man arrived at an emergency room in Florida: unconscious, critically ill and without any form of identification. As his care team sprang into action, they found he had a tattoo on his chest that said “DO NOT RESUSCITATE” with his signature tattooed below. The team of physicians was unsure about how to proceed: should they honor the man’s tattoo as his binding wish, or take lifesaving measures to help revive him? A previous case from five years earlier outlined the story of a man with a similar tattoo who said he wanted … [Read more...]
Talk Among Yourselves: Why Professional Advisors Communicating Matters
Almost everyone has someone in their life who they look to for advice and guidance. Most people look at their parents this way (I certainly do!), but people also have other influential advisors -- whether it be a school teacher, church leader, business mentor or some other sort of influential advisor. These people help show us the way through life, and sometimes they are not confined to one category. I have a church leader who taught me lessons that transformed how I conduct my business, and that have led me to be more successful in service to my customers. I find I am able to pass along … [Read more...]
End of Life Planning: A Quick Reference Guide to Protecting Assets
As part of my estate planning practice, I try to educate people concerning issues that may arise in the future, especially for those who are nearing the end of life. I teach a seminar that I call the “Human Ostrich” seminar, where I teach people how to avoid losing everything they have worked so hard to achieve. Human Ostrich is a silly name for my seminar but I wanted to illustrate a point that most people stick their head in the sand as they get older, hoping that bad things won’t happen to them. Often people delay making important decisions because they feel that they are not ready to … [Read more...]
How Often Should You Update Your Estate Plan?
Almost everyone with whom I work asks me how often they should review or update their estate plan. I don’t have a definitive answer for them, and I sometime I wonder if some people think there is a secret magic formula passes among lawyers to determine the answer to this question. (Spoiler Alert: There is no secret formula) I base this hunch on the reactions I get when I say there is not a definitive time period. Many scoff, others are incredulous that I would not know something so basic (in their minds), and some even react with contempt, accusing me of trying to mislead them, or make … [Read more...]
Protect Your Family (and Yourself!): 7 Questions For Your Power of Attorney Agent
A durable financial power of attorney and a durable medical power of attorney are critical documents to have in place. I have specifically discussed how Powers of Attorney can help protect you on other blog posts here and as part of end of life planning here. These documents allow you to choose someone, or some other entity, to make financial or medical decisions for you, if you are unable to make your own decisions. There are many reasons you may not be able to make your own decisions, including an injury or accident that temporarily takes away your ability to make your own decisions (or … [Read more...]
Protect Your Family: Powers of Attorney for Adult Children
After what sometimes seems like endless years spent raising a child, their adulthood—and all the rights that go with it—may creep up suddenly. When you are about to send a child off to college or to a study abroad program, you're probably busy with travel arrangements, last-minute shopping, packing, worrying about how your baby will fare living away from home, and wondering what the future holds for your child. All of these things are important, and need to be considered and attended to in preparing a child to go off to college. And much as you hope you've prepared your children to take … [Read more...]
