If you are ahead of the curve in creating an estate plan, great! But it is also important to have it reviewed often. Not only is the law complex, but it also changes constantly. Changing tax law may affect what type of estate plan you need and provide significant benefits for you to take advantage of. New property laws may provide more ways to transfer property after death while also avoiding probate.
 
Similarly, your life circumstances, family dynamics, and property all change over time. A will created twenty years ago may have been perfect for your family at that time, but since then your children have grown up, you may have bought and sold property, and you or your family members may have concerns about your health or finances.
 
It is generally recommended that you review your estate planning every five years to seven years. There are also significant life events that should prompt you to review your estate planning even sooner. These events can include: getting married, divorced, the addition of new children or grandchildren, the death of a spouse, a diagnosis of an illness, or a significant change in your property or finances.
 
To review your existing estate plan, or to start planning your estate, contact my office to set up a consultation.

In this day and age, the nature of our assets is changing. Traditional estate planning tells us that we should have a Last Will and Testament so that our real estate, bank accounts, and personal property will go to our heirs when we die. However, as the age of technology progresses, so many of our assets are becoming digital and web based. Physical photo album books are replaced with Facebook albums and cloud storage. Letters replaced by email. Cryptocurrency. Even bank accounts, investment accounts, stocks and retirement accounts can be set up and managed completely online.
 
What happens to these digital assets if you become ill, incapacitated, or after your death? Does anyone else have access to your email, Facebook, or another online accounts? If not, do you have a record of your user names and passwords?
 
Fortune reports an unusual story: “The proprietor of QuadrigaCX, a Canadian cryptocurrency exchange, died suddenly, taking knowledge of his business’ recovery keys to the netherworld with him. Apparently, nobody—including the owner’s widow—has access to the $190 million in virtual currencies his business secured.”[1] While an extreme example, I have seen situations in which a surviving spouse struggled to get into the deceased spouse’s accounts to pay bills, access funds, and even get photos off of sites like Facebook and Google.
 
So how can estate planning help? One way to look at estate planning is to see that you are creating a road map for someone to follow. Providing your agent with a clear understanding of your property and assets is as important as directing how they should manage your affairs.  
 
The other important aspect of estate planning is to provide your agent with easy access to your property so that they can manage your affairs without too much hassle or hoop jumping. Most online accounts, such as cryptocurrency, online stock accounts, etc., provide means of naming beneficiaries to receive the account upon the account owner’s death. Facebook provides the means of naming a “legacy contact”, a contact you nominate to access your account upon death. Such a contact can create memorial posts, download and save photos and other posts or information, and notify Facebook contacts of your passing.
 
Start planning your estate today and let’s build your road map! Contact the office to set up a consultation.

[1] Hackett, Robert. “Death Endangers Cryptocurrency Treasures: Plan Your Estate.” Fortune, February 2, 2019, http://fortune.com/2019/02/02/cryptocurrency-death-bitcoin-estate-planning/

Clients often tell me that they want a Will in order to avoid probate. What is probate and why are people so eager to avoid it?
 
Probate is a legal process by which a person’s assets are handled after death. Sometimes, a probate proceeding is simple and comes with very little difficulty for the people involved. However, when there are multiple beneficiaries, or arguments over how the estate should be administered, this process can become time-consuming, complicated, and very costly.
 
Let’s look at some examples of challenging probate situations and how better planning might have helped each situation turn out better. These stories are loosely based on real client experiences. However, for confidentiality’s sake, I’ve kept them as general as possible.

​Siblings… friends or foes?
Here are contrasting cases of two siblings trying to administer a parent’s estate. In both cases, the parent died without a Last Will. There were multiple real properties involved and the only beneficiaries were the two siblings.
 
In one case, the siblings were on very good terms. They were in agreement on which sibling should be the Personal Representative (PR) and the sibling who was appointed PR was good about keeping the other sibling informed on the status of the case. They attended all client meetings together and generally worked together to get all the work done, including in getting property appraisals, holding estate sales, gathering assets, and finalizing taxes. By working together, they were able to administer their parent’s estate easily and in under a year.
 
In contrast, the other two siblings were appointed as joint PRs to administer the estate. Almost immediately, disagreements between the two siblings halted administration and left the estate stagnant for almost a year. Upon threat of impending closure of the estate, one sibling attempted to get things moving again.
 
Disagreements over the value of the real properties involved led to each sibling obtaining individual, multiple appraisals of the properties each varying significantly from each other. By delaying in working together or finding a compromise, the properties fell into disrepair and the value continued to depreciate until they ended up selling for much less than they would have. Eventually, they were able to complete the process, but sadly without mending the relationship between them.
 
How could this situation turned out differently? Even with the siblings who were able to agree on everything, if their parents had prepared a Last Will, they could have left precise instructions on which sibling should administer the estate, how property would be divided between the heirs, and even, how disagreements should be settled if they arise.

​Minor Children, Major Obstacles
There is a common misconception that when a person dies without a Will, their spouse will inherit all their property automatically. Unfortunately, this is just not true. Any property that a husband and wife own jointly will indeed pass outright to the surviving spouse. However, if one spouse owns property individually, with no beneficiaries named, that property could end up being subject to probate.
​
A man in Arkansas died very unexpectedly in a car accident, leaving behind his wife, and two very young children. Unfortunately, the couple’s home, a few accounts and some other properties were solely in the husband’s name. Because the man did not have a Will, Arkansas law dictated that his assets, would be distributed one-third (1/3) to his surviving spouse, and two-thirds (2/3) to his two children. This meant that his two children, both younger than ten, were suddenly entitled to receive over $100,000 as an inheritance each.
 
To avoid this type of situation, and to ensure that any inheritance left for minor children is protected for their benefit, it’s important to have an estate plan. Utilizing an estate plan is the best way to make sure your wishes actually happen and distribution of your assets isn’t left to state law.

Update! Update! Update!
So, you have a Last Will and Testament! Great! When was the last time it was reviewed and updated? I met with a woman who knew her time was ending. As she struggled to communicate with me from her hospital bed, I felt her pain, and I wished that thoughts of updating her Will wasn’t what she was forced to focus on in her last moments. Her will was over thirty years old. Her nominated personal representatives had predeceased her. Of her four children, only one was surviving, and there were no grandchildren. All she wanted was to update her will to leave everything to her one surviving son. I met with her on a Monday afternoon, prepared the documents, and returned to the hospital the following morning. Unfortunately, she was not conscious when I returned, and she died later that same day without signing the new documents.
 
Having an up-to-date estate plan is crucial. The general recommendation is that an estate plan be reviewed every 5-7 years. All sorts of events in life can trigger the need for an estate plan update: deaths, births, selling property, buying property, sickness, divorce, marriages, the list goes on. If you have an estate plan, and if it’s been more than 5 years since you reviewed it to make sure it still works for your situation, meet with an estate planner today! Don’t wait until it’s a critical situation and you need the documents tomorrow.
 
These are just a few of many stories in which the probate situations caused heartache, presented challenges, and could have gone smoother. For more information about the probate process and how to avoid it, contact the office today!

In a recent interview featured in the Senior Times, I had the pleasure of connecting with Ryan Miller from Senior Care Partners P.A.C.E., to explore the world of Wills & Trusts.

Our conversation delved deep into the essence of estate planning. By sharing personal anecdotes and professional insights, we highlighted the impact these important decisions can have on individuals and their families.

Together, Ryan and I discussed the complexities of estate planning, exploring the differences between Wills and Trusts and addressing common misconceptions and accessibility concerns. During our exchange, we emphasized the importance of personalized strategies and professional guidance in safeguarding one's legacy.

I want to extend my gratitude to Ryan Miller for sharing this important information and allowing me to share insights on a topic that impacts us all. Read the full interview in the Senior Times and gain a deeper understanding of Wills & Trusts.

For more information on Senior Care Partners P.A.C.E. and the important services they offer senior adults in our area, visit their website here.

For me one of the best parts about estate planning is getting to know my clients personally, hear their stories, find out about their family and discover how they want to plan for their future. In an industry that can get bogged down with the legality and legalese of service, it is important to me to make those personal connections with my clients.
 
One of my favorite things is when my clients ask me if they can provide for their pets through their estate plan. The answer is yes. And why shouldn’t you? Your pets are part of the family too. There are a couple different ways to provide for your pets in the future: pet provisions and a pet trust.
 
A pet provision is a specific gift or direction to your Executor or Trustee regarding the care of your pets. One of my clients in Arkansas provided for their pets by naming a caregiver and setting aside a specific cash gift to the caregiver to use for their pets. A provision for your pet could cover anything from appointing a caregiver, gifting cash or other property to be used for the care of your pets, or requiring that your Executor or Trustee choose a no-kill shelter if for any reason no one is able to care for your pets.
 
While a pet provision is beneficial in making your wishes for your pets known, it is often difficult to know whether the provisions will be carried out properly. A better option may be a pet trust. Michigan law recognizes the validity of pet trusts.
 
A pet trust is created by choosing a trustee and a caregiver. The trustee is the person who manages the funds in your pet trust for the care and benefit of your pets. The caregiver is the person who is actually taking care of your pets by providing food, shelter, taking them to the vet, etc. Sometimes the trustee and caregiver may be the same person.
 
Another married couple that I represented had no children, but three cats. They set up a pet trust which provided a fund for the care of the cats, but they didn't know who to name as caregiver. So they added provisions that the trustee of their trust find a suitable caregiver and directed that their home was not be sold for a year or until a caregiver was found, whichever came first.
 
The terms of your pet trust will lay out how much money is going into the trust and specific directions about how your caregiver should care for your pet, such as nutritional requirements and health issues. The amount of money given to your pet trust should be reasonable and be enough to cover for your pet’s needs for the rest of their lives. Take into consideration the life expectancy of your pets as well as any potential health concerns.
 
A pet trust will remain in effect until the last of your named pets passes away. Therefore, you should name a beneficiary to receive the remaining funds in the pet trust, if any.
 
Want to learn more about how a pet trust could work for your family? Contact the office today!
 

In the vast realm of estate planning, the Michigan Ladybird Deed stands out as a unique and powerful tool. Also called an "enhanced life estate deed," this lesser-known document offers Michigan residents a flexible way to manage real estate after death.
 
Named after First Lady Ladybird Johnson, a Ladybird Deed is a type of deed used to transfer property without the requirement of going through the probate process. The probate court process can be time-consuming, expensive, and emotionally taxing for the family left behind after a death. The Ladybird Deed provides an elegant solution to avoid probate while retaining control over your property during your lifetime.
 
One of the most significant advantages of a Ladybird Deed is its flexibility. Unlike other deed transfers, it allows you to retain full control over your property while you are alive. For example, a life estate grants an interest in the property to both the owner and the beneficiary, or remainderman. The owner of the property is unable to sell the property without the remainderman’s approval, and the owner would only get a portion of the proceeds of such a sale. In contrast, with a Ladybird Deed, you can sell, mortgage, lease, or even give away the property without needing to seek permission from the beneficiaries named in the deed.
 
Additionally, the Ladybird Deed provides an advantage when it comes to Medicaid planning. Medicaid, the state and federally funded program that provides healthcare coverage to eligible low-income individuals, has strict asset limits. Utilizing a Ladybird Deed allows you to potentially qualify for Medicaid assistance while preserving your home for your heirs after death.
 
The Ladybird Deed also allows you to change your mind about the property's beneficiaries at any time. You can simply create a new Ladybird Deed, modifying the beneficiaries or their shares of the property, giving you flexibility in your estate planning strategy.
 
Just like with any legal instrument, a Ladybird Deed requires careful consideration and proper execution. It is important to consult with an experienced estate planning attorney to ensure that the deed is drafted correctly and in compliance with Michigan law. Contact our office today to discuss whether this is the right tool for you and your family.

​In July, I sat down with Connor Bauserman, host of the Wealthy HOMES Podcast to discuss the importance of estate planning. In particular, we discussed why it is so important for parents of young children to have an estate plan in case the unimaginable was to occur. An estate plan allows you to nominate guardians and direct the distribution of assets over time for the benefit of your children. Listen below:

For many people, starting the estate planning experience may be daunting. The prospect of discussing hard topics, such as death and dying, is intimidating to many people. On the other hand, knowing that there is a plan in place for their family after death grants some a sense of peace for the future. Whatever your reason for deciding to embark on the estate planning journey, knowledge of what to expect at your initial consultation may help ease your concerns. Here are four tips to help you through the process:
 
1. Fill out Client Intake Forms Prior to Your Consultation
 
Upon scheduling your consultation, your law firm will likely provide you with client intake forms. These may ask a variety of questions about yourself, your spouse or partner, your children and other potential beneficiaries. Additionally, a client intake form will likely ask for information about your property, assets, and current beneficiary designations. You may be asked to provide names and contact information for other professional advisors, such as your CPA or financial planner.
 
This information gives your attorney some background information as they begin the estate planning conversation with you. It will assist them in beginning to form a picture of what type of estate plan you and your family may benefit from. Failing to bring the completed forms to your consultation may end up slowing down the estate planning process.
 
2. Be Open and Honest
 
At your initial consultation, your attorney will likely ask you a lot of personal questions. Questions that, at times, may even feel intrusive and intense. It is important to answer these questions as honestly as you can. Your attorney will advise you on the best estate plan for your situation based on the answers to some of these questions. Questions may include asking whether you have concerns about any of your beneficiaries, for example, are they financial stable, healthy, is divorce or creditors a concern, is there any concern about drug, gambling or other addictions. In situations involving second marriages, or other prior relationships, questions may be asked about how you wish inheritance to be divided between children and step-children.
 
Additionally, when talking about death and dying, your attorney may encourage you to think about your specific wishes with regard to incapacity, funeral and burial plans, advanced care planning, i.e., end of life planning and other hard to discuss topics. While these questions may be difficult to address, having a solid plan in place will create peace of mind for you and your family members.  
 
3. Consider Who Your Trusted Agents Will Be
 
A large part of estate planning is deciding who will act as your agent for various matters and decision making. For some people, adult children are the perfect persons to appoint to these roles. Others prefer to appoint other family members or friends. For those who do not have a trusted family member or friend, a corporate trustee may be the best option. Here are some of the roles that your estate plan may need to include:

• Trustee: a person who manages and distributes trust assets upon your incapacity or after death.
• Personal Representative: a person who administers your will and deals with the probate court upon your death.
• Guardian/Conservator of Minor Children: a person appointed to care for your minor children in the event of your death.
• Agent: a person appointed under a durable power of attorney to manage your finances in the event of your incapacity.
• Patient Advocate (or Health Care Agent): a person appointed to make health care decisions and end-of-life decisions in the event of your incapacity.

 
4. Follow Up With Additional Information Quickly
 
If you decide to retain the attorney you meet with, they may ask you follow up questions to confirm the selections you made during your consultation. Additionally, they may ask you to provide account statements, contact information for your beneficiaries, agents, trustees, and your financial advisors. Providing all the information requested in a timely manner, ensures that the attorney is able to start work on your documents as soon as possible, meaning you are one step closer to having a completed estate plan and peace for the future.
 
Starting the estate planning process doesn’t need to be overwhelming. Eliminate stress by carefully considering your options and providing all the information you can to your attorney. Doing so will allow them to guide you to the best plan for your family and situation.