Many people scrimp and save in the hopes of having something left over for their children at their death. But as an estate planning attorney, I know that often times that hard-earned-by-mom-and-dad inheritance turns into a squandered opportunity for the kids. The money (much like lottery winnings) is quickly used on a new flat screen TV, that motorcycle they always wanted, a two-week cruise to the Caribbean, or the worst possibility: to fuel an addiction to drugs, alcohol, or ...
Leaving A Legacy Of Conflict – Celebrities Who Died Without Wills: Martin Luther King, Jr.
This is the first of several posts about celebrities who died without wills, and as a result left a legacy of conflict, anger, and often lawsuits between their loved ones. My first entry: Martin Luther King, Jr. MLK Jr. left no will. Of course, his death came as a shock and surprise, but everyone dies at some point and many people happen to die at a young age. (Obviously few people are assassinated, but that’s not the point.) Dr. King’s estate included such items as his Nobel Peace ...
Trust Fund Doggie?
When considering what should happen with a person’s financial resources after his or her death, many people do put something aside for the care of their pets, including naming “guardians” and setting aside funds in a “pet trust” for the benefit of the pet. However, pet trusts are usually just enough to pay a pet’s basic expenses: food, vet visits, etc. In that context, pet trusts are a sensible way to ensure that a beloved family member does not end up in a shelter in the event of the ...
Do I Still Need A Trust?
It used to be very common for estate plans to include a two-part trust scheme, often called an AB trust, designed to avoid or minimize estate taxes. In 2012, Congress finally passed “permanent” estate tax legislation, with the estate tax exemption set at $5,000,000 per person adjusted for inflation. In other words, married couples who have less than $10,000,000 in assets no longer face serious estate taxation concerns. It might be tempting to think that the once-common trust is now a relic ...
Estate Planning: Not Just For Elders And The Rich
I’ve been thinking about common myths about the estate planning process (creation of wills, powers of attorney, living wills, trusts, and the like), and I’ll be blogging about those myths for the next few entries. The first myth I want to tackle is that estate planning is only for the wealthy or the elderly. It is true that estate planning for rich people is somewhat different than estate planning for folks of more modest means. However, estate planning is mostly about making sure you, ...
I Don’t Need An Estate Plan, Right? I Don’t Really Own Anything… Wrong!
When I talk to people about “estate planning,” the most common response is, “I don’t need an estate plan because I don’t have an estate.” The problem is that the word “estate” conjures visions of Hearst Castle or the Biltmore estate. People wrongly assume that they don’t need an estate plan unless they are uber-rich. But the reality is that, in the law, the word “estate” just means “all the stuff someone owns at the time of their death.” So, anyone who owns something (a favorite pair of ...
