In order to smooth this complicated process, the wills and trusts lawyer supplies clients with a list of what needs to be collected. Not every item on the list will apply to each client, but by going through and gathering the documentation that is relevant, an individual can speed the process and make sure that their assets, as well as their businesses, heirs, and personal lifestyle are fully protected.   Some of that information includes, but it not limited to:

Real Property

• Any recorded deed for property owned by the individual
• Copies of title and/or homeowner’s insurance policies
• Copy of the most recent property tax bill for any real property owned by the individual
• Deeds of trust, mortgages, and promissory notes
• Vehicle registrations, including mobile homes

Financial Statements

• Checking and savings accounts
• Money market accounts
• Credit union accounts
• Safe deposit boxes
• Investments, mutual funds, and dividend reinvestments
• Certificates of deposit
• Original savings bonds or treasury notes
• College tuition and savings programs

Specific Assets or Credits

• Original copies of publicly traded securities held as certificates
• Deeds of trust, promissory notes, mortgages, or other financing statement held by the individual
• Shareholder agreements
• Original stock certificates
• Trust agreements when the individual is a beneficiary
• Deeds/Contracts for burial plots
• Financials and contracts for annuities
• Pension plans, IRAs, 401(k), deferred compensation, etc.

Business Documents

• Closely held business or professional association – corporate books
• Partnership agreements for general or limited partnerships
• Operating agreement for LLCs
• List of assets for sole proprietorships owned by the individual

While gathering each of these documents can be a time-consuming process, it is an important part of working with the wills and trusts lawyer in Howell in laying the right foundation for your trust. Each of the items above may be used to fund the trust, and therefore a change of title, beneficiary designations, or other aspect may be in order. There are some pitfalls that can cause difficulties or delays, so getting a quick start will bring about a quicker end! Your Howell wills and trusts lawyer will have solid advice and suggestions on how best to track down this vital information.

The post Moving Assets into a Trust with a Wills and Trusts Lawyer in Howell appeared first on Michigan Estate Planning.

What Your Financial Planner Needs To Know…

There’s a handful of financial advisors that are familiar with iPug asset protection trusts.  Now if you were to ask your financial advisor, he or she may say, “oh yeah, I know those…”, but chances are they are just covering for a lack of knowledge.  You can read more on this issue (What Your Financial Planner or Family Lawyer Doesn’t Know, Hurts You!).  Either way, most financial planners are not familiar with the planning options with irrevocable trusts, they are used to the old Irrevocable Life Insurance Trusts (ILITs) or other irrevocable trusts that were set up for estate tax purposes.

The new breed of irrevocable trust is very different than the old style, estate tax planning irrevocable trust.  My colleague David M. Goldman breaks down the issue wonderfully on his blog Florida Estate Planning Lawyer Blog. In his blog, he lists the problems with the old style irrevocable trusts:

1. Loss of control over the management of the assets;
2. A separate EIN number for tax reporting purposes;
3. A larger tax bill because of the way traditional irrevocable trusts are taxed;
4. A loss of the step-up in basis available to assets owned by an individual upon the death of the settlor; and
5. The inability to change provisions or beneficiaries in the future.

Now remember, these problems only apply to irrevocable trusts of old, not the modern irrevocable trust.  

The Modern Asset Protection Trust- The iPug

The modern irrevocable trust arose to address the concerns of clients today.  My clients are not concerned with estate taxes (unless you have over $5million or won the Powerball…), but what they are concerned about are long-term care costs and to a lesser extent law suits.

David Goldman again goes on to list out the advantages of the iPug Trust:

1. This is a grantor trust that you create and are in control of.  No beneficiary ever has a right to demand a distribution of income or principal during your life.
2. The trust provides asset protection from future liability like car accidents, professional or personal negligence, and even can be structured to provide protection from Medicaid ineligibility.
3. The trust is a disregarded entity for tax purposes and uses your social security number.  This means you are taxed just like as if you owned the assets yourself.
4. The trust does not remove assets from your estate so your beneficiaries receive a full step up in basis upon your death, just like with personally owned assets or those in a revocable trust.
5. The assets in this trust are protected from the surviving spouse’s future marriage in much the same way that a prenuptial agreement would protect the assets.
6. The assets are protected from an elective share claim in the future.
7. You can change the beneficiary at any time without risking loss of the assets to creditors.
8. The trust has special provisions to protect inherited IRAs from the claims of creditors.  (A recent Supreme Court case held that inherited IRAs are not protected from creditors)
9. All assets that can be transferred to a revocable trust can be transferred to an iPug trust without penalties or termination.
10. The iPug trust can contain trust protectors that enable changes to the documents if the laws change in the future, in much the same way as one would have with a revocable trust.  Often in joint irrevocable trust, changes cannot be made after the death of the first spouse, but even with a joint iPug trust changes can be made after the death of the first spouse.

As you see, the modern asset protection irrevocable trust is a completely different animal.  These trusts are great for avoiding probate, protecting your beneficiaries, and most importantly–protecting you.  Given these benefits, it’s a matter of time before financial planners will be more familiar with the iPug Trust and realize these aren’t your parent’s irrevocable trusts of old.

The post Why Your Financial Planner Needs to Know about an iPug Asset Protection Trust appeared first on Michigan Estate Planning.

Each state has its own rules regarding what happens to inherited funds in the case of a divorce, so you want to be sure to do your planning with a knowledgeable Livonia estate planning lawyer. While the need to build in some safety mechanisms may be more obvious when you don’t like your son- or daughter-in-law, it’s important to remember that the future is uncertain and the only constant is change. Having a contingency plan in place just makes sense.

Why is this a big deal? Take the example of a fictitious Livonia couple. The wife inherits $100,000 from her parents. According to estate planning law in many states, the $100,000 will probably be protected in the case of a divorce and will revert to the wife. On the other hand, if that money had been invested in some way that caused it to grow, anything over the initial $100,000 could be considered marital property and be subject to divorce procedures.

One of the ways that an estate planning lawyer in <insert state> will likely suggest avoiding this outcome would be to create a well thought-out trust. In order to do this, the trust would be structured in a way that allows the child ongoing access to the funds but also limits his or her “ownership” of them, therefore keeping them from becoming marital property. There are different means an estate planning lawyer can use to reach this goal, such as naming the child as a trustee or co-trustee. Trustees generally have control of the funds but not out-and-out ownership.

Additionally, a good Livonia estate planning lawyer may advise you to specify how the funds in the trust may be used, for example for educational purposes, although there are several reasonable ways to structure these requirements. One thing to avoid is a situation where the child receives regularly scheduled distributions, as that money could be considered marital property. Instead, the child should need to request funds from a trustee who is predisposed to provide them.

As with any area of Livonia estate planning law, the topic can be pretty complex, but knowing the right questions to ask of your lawyer can make a big difference in being on the right track.

The post Estate Planning Advice to Protect Your Children if They Get Divorced in Livonia appeared first on Michigan Estate Planning.

If you die without a Will or some other form of estate planning, the state in which you reside and the IRS will simply make one for you. Of course, they have no interest in avoiding or reducing estate taxes, minimizing estate administration costs or protecting your family and legacy. The distribution of your assets will just be turned over to the Probate Court to be distributed in accordance to the government’s rule book.

There are Four Ways to Pass Property at Your Death

1. Joint Property: is a type of ownership of property or asset in which you and another co-owner have a right of survivorship, meaning that when you die, your interest in the property will pass to the surviving owner or owners by operation of law, avoiding probate. Examples of joint property ownership are joint bank accounts and jointly owned real estate.

2. Beneficiary Designation: you name a person designated as the recipient of funds or other property under the terms of a contract. For example, you have an IRA, 401k, or a Life Insurance Policy. By contract, the beneficiary you designate will receive your funds at your death, thereby avoiding probate.

3. Trust: if you put your property into a trust, and the trust is drafted and funded properly (funded means that all of your assets that you want to pass are titled in the trust), your property will pass to your beneficiaries at your death according to the terms of the trust, avoiding probate.

4. Probate Court: if you have assets titled in your name at your death and you have not provided a mechanism to pass the assets to your beneficiaries (i.e. the above three ways to pass property at your death), the only mechanism left to pass your assets is the Probate Court.

What is Probate?

Probate refers to the method by which your estate is administered and processed through the legal system after you die. The probate process essentially transfers your estate in a certain manner (for example, your debts and taxes paid before your beneficiaries receive their inheritance). Think of the probate process as the “script” that guides the transfer of your estate according to the rulebook of the state you live in.

The probate process is needlessly time consuming, frustrating and expensive. It is also open to the public, meaning creditors, predators or anyone else will have complete access to all information about your estate. For the vast majority of people, the benefits of a Will or other estate planning tools far outweigh any initial costs.

Get Educated

To learn more, join us for one of our FREE LifeCare Planning Workshops. Our estate planning experts will have upcoming workshops in Ann Arbor, Bloomfield Hills, Brighton, Dearborn, Lansing, Livonia, Novi, and Trenton. We promise that time will fly, you’ll learn a lot, and have a little bit of fun. To sign up for a LifeCare Planning Workshop click here.

The post The “10 Most Gruesome Estate Planning Mistakes” series. Mistake #1: Dying Intestate appeared first on Michigan Estate Planning.

That last part is the most important thing.  I don’t pretend to know or dismiss things I don’t know enough about, I either learn them or accept that I don’t know.  That’s how I got into elder law in the first place. I was a pure estate planning attorney, focusing on what happens when you pass away.  But I was being bombarded with questions revolving around “what happens if I don’t pass away and continue to age, then what?”  I didn’t have the answer, didn’t pretend to have the answer, so I dove deep into the laws and strategies to become an expert on that answer.  Going on to become the second youngest attorney at the time to pass the Certified Elder Law Attorney exam in the nation and become the 15 CELA in the state of Michigan.  Then going on to write a book on the subject and then teach Elder Law at WMU Cooley Law School.

Who Do You Trust for Heart Surgery?  Heart Surgeon or Family Doctor?

If you are going in for heart surgery would you want the experienced heart surgeon or would you trust your family doctor when it comes to performing the surgery?

Likewise, I’m surprised when families get a second opinion from a financial planner or family lawyer when it comes to our recommendations.  We then end up having to educate the family lawyer or financial planner on Medicaid, Medicare, Tax Law, Veterans Benefits, Asset Protection rules, Trust rules, beneficiary designations, etc…

I’m happy to do it, but I just feel for the families who are often mislead when it comes to asset protection by lawyers and financial planners who know enough to be dangerous…and often are.

When it comes to planning to protect you legally from the devastating cost of long-term care are you going to have more faith in a Certified Elder Law Attorney (CELA), who teaches elder law to law students as an adjunct professor, written a book on the subject, teaches continued education to lawyers and financial planners on the topic or an annuity salesman or basic estate planning attorney?  I welcome the opportunity to educate the professional on the planning strategies–they often turn into wonderful referral sources.

Price Shop Your Heart Surgeon?  Documents versus Planning.

Would you price shop your surgeon?  Do you want the cheapest heart surgeon you can afford?  Probably not.  The difficult thing to understand with good legal estate planning is that not all documents are created equal.  If you call up 10 attorneys and ask how much a trust costs, you’ll get varying answers.  You can have a trust done online for probably $40 or you can have an estate plan done for free through UAW Legal Plan, if you’re a member.  But the age old lesson applies….you get what you pay for.  That applies to legal planning as well.

Having a trust or power of attorney isn’t enough.  It’s what that document says.  Better than that is how those tools are used.  If I asked you to get me a paint brush, would you know what type of brush to get me?  It’s all about the planning.

Their Ego Versus What’s Best For You

Sometimes, not all the time, there are financial planners or other attorneys who feel like that if they are not familiar with a strategy or haven’t heard of a certain type of trust, that it a) doesn’t work or b) isn’t right for you.  This is just their ego getting in the way of what is best for you.  You look up to them as a trusted advisor and they may feel that by having a new strategy (asset protection isn’t new, by the way…), it challenges their authority and the respect you may have for them.

This is very closed minded of the advisor and can be detrimental to your planning.

I love working with open minded lawyers and advisors.  In fact, just last week I was having coffee with an advisor at one of the Wall Street type financial planning firms and he said to me “Chris, this is amazing, can you come present to my group?”  Of course.  This is the point, share ideas for what’s best with your clients.  Not all planning is right for all clients, but at least know the options out there.

Sure, you can do a basic trust that avoids probate (if funded properly) and controls assets upon death.  But you can also build an asset protection trust that does all that PLUS protects you.  Get educated.  Know your options.  Choose a plan that works for you.

The post What Your Financial Planner or Family Lawyer Doesn’t Know, Hurts You! appeared first on Michigan Estate Planning.

There is also a need to protect one’s assets during his or her lifetime. Not only is this important to the quality of life, but it also helps ensure that there is property that can be left behind! Asset protection is about choosing the best strategies to minimize the potential negative consequences of liability. That includes protection from claims made against and individual, as well as claims against your assets. The former would include things such as property damage or physical harm to another that was caused by you. The latter would have to do with damage caused by something you own, such as a business or property.

Commonly, if a claim is made against an individual or their property, just about everything that person owns can be put at risk. For example, a judgment against you in a court of law can give creditors the ability to go after your assets in order to be compensated for damages. It can be an unpleasant eye-opening experience for a small business owner to discover that because someone was injured in their place of business, creditors may be able to take away personal assets that have nothing to do with the business itself. If someone slips and falls in your restaurant, as the owner, you could lose your home.

While estate planning focuses pretty heavily on wills and trusts to distribute assets after death, there are advantages to utilizing these tools during an individual’s lifetime, too. A trust can be especially helpful in keeping a person’s assets out of harm’s way, which is why working with a Brighton estate planning lawyers is such an important part of a solid asset protection strategy.

Using a trust for asset protection doesn’t come without its limitations, though.

1. In order to shield the assets from creditors, an estate planning lawyer will likely include a “spendthrift provision” in your documents. However, a spendthrift provision cannot be used with a revocable living trust.
2. The trust must be for the benefit of the beneficiaries, rather than the person setting it up.
3. Beneficiaries cannot be involved in the management of the trust and cannot make any changes to its terms.

There are other advantages and limitations to using a trust for asset protection during life, and a good <insert city> estate planning lawyer will be able to work with clients to determine whether it is a useful strategy based on each individual’s needs.

The post A Helpful Look at the Differences Between Estate Planning and Asset Protection in Brighton appeared first on Michigan Estate Planning.

In 2014, Congress proposed a law that would penalize veterans and surviving spouses of veterans who were looking to apply for the VA Benefit if they transferred assets within the three year period from when they applied for benefits.  If the veteran or surviving spouse did transfer assets, there would be a penalty imposed on the veteran or surviving spouse.

However, that bill failed and never saw the light of day.

VA Benefits Proposed Rule Change in 2015

In early 2015, the VA took another route to get the “3 Year Look-back” rule implemented.  Instead of a change in law through Congress, they looked to change the administrative rules.

With that goal in mind in early 2015 they made a proposed rule change that would implement a 3 year look-back.  There was a comment period that closed March 24th.  There were over 900 people who made comment, including many elder law lawyers.

There were credible rumors in the elder law attorney community that the proposed rule change would go into effect in the spring of 2016.

Another Attempt for Congress to Pass VA Rule Change

The Elder Care Firm’s VA Accredited Attorneys have consistently advocated for veterans, and argued the VA did not have independent authority to make such changes and needed Congressional approval. Apparently the VA agrees, so it secured the support of a few senators to craft a bare-bones House Resolution called the “Veterans Care Financial Protection Act of 2016.” Essentially, this Act would approve any “standards” developed and implemented by the VA “that protect individuals from dishonest, predatory, or otherwise unlawful practices relating to increased pension available … on the basis of need for regular aid and attendance.”

If this Resolution passes, all of the proposed changes to Title 38 of the Code of Federal Register, as drafted by the Veterans Administration, affecting veterans, imposing transfer penalties of up to 10 years, would become law.

However, according to VA law expert Victoria Collier, there is one glaring problem, “neither the bill nor the proposed changes in Title 38 define “dishonest, predatory, or otherwise unlawful practices.””  For example, lawyers who draft estate planning documents, licensed to do so in the state where the client resides, are acting lawfully. Certainly, misrepresentation that a trust or an annuity is required in order to get VA benefits is dishonest.  But making transfers of assets to trusts and the purchase of an annuity itself are not unlawful.  Holding educational seminars is not predatory.

Collier goes on to comment, “This is yet another example of a poorly drafted piece of legislation designed to appeal to the emotions of the ignorant, and it purposely does not adequately explain the consequences for or against the cause.”

Veterans will be harmed by the changes in the laws, not protected. The VA could punish the group of professionals using unethical practices or committing illegal acts.

Let your representatives know the real issues behind the reason for this new resolution. Urge them not to pass this blindly – know what the proposed rules are that affect pension benefits and veterans.

Planning ahead for VA Benefits and Medicaid

The earlier a family starts planning for a Veteran or surviving spouse of a veteran, the more options are on the table as the loved one navigates the long-term care journey.  Often, as VA Accredited Elder Law Attorneys, we utilize special asset protection trusts to help qualify for the VA Benefit or Medicaid.

The post VA Tries Again to Get Rule Changes Approved by Congress appeared first on Michigan Estate Planning.

Hiring a Livonia probate lawyer is a good idea for another reason, too: If you do something wrong in the proceedings, the liability is on you. Considering all the complicated paperwork, financial responsibilities and time-sensitive deadlines, a lot of folks just don’t want to take on that kind of responsibility. Additionally, the person in charge of an estate (the Executor) is often dealing with his or her own grief and doesn’t want the additional stress of the job.

That said, plenty of estates can go through probate without a lawyer. If all of the decedent’s assets can be transferred outside of probate, then a probate lawyer wouldn’t be necessary. Cases like that might include assets that are held in joint tenancy, or those that have a named beneficiary, such as an insurance policy or retirement account.

It’s up to the individual in charge to determine if or when professional advice is needed. Some circumstances where this might happen could include:

• Family members threatening to contest a will
• Business dealings that weren’t complete when the decedent passed away
• The need for a guardian for a minor or disabled adult
• A shortfall of assets to cover debts owed by the estate
• There are complications with the taxes
• Assets were not properly owned by an existing trust

If the situation isn’t overly complex, you may only need the Livonia probate attorney to consult with you or review a few documents. A couple of hours of the attorney’s time might be all you need to ensure that you’ve got everything in proper order. On the other hand, if things start looking particularly complicated, it’s a good idea to gather up all your materials and sit down with an experienced probate lawyer in Livonia for your own protection and your family’s peace of mind.

The post Do You Need a Livonia Probate Attorney? appeared first on Michigan Estate Planning.

All of us have family. Whether it is our spouse, children, extended family, or even our pets. What does estate planning have to do with your family?  Everything!  When we at the Elder Care Firm ask our clients what they want their estate plans to accomplish, the typical answer is, “I want stay in control.”  Another answer we hear is, “I don’t want to become a burden to my loved ones,” and also, “I want to keep it simple.”

Plan While You are Healthy

The reality is, the only way to stay in control and keep your estate planning simple is to do it now, while you are healthy.  In order to avoid becoming a burden to your family, your plan must provide your wishes for your care so your loved ones don’t have to make life altering decisions for you in matters they ultimately didn’t know what you wanted.

A terrible situation that we have frequently seen at the Elder Care Firm is when the children of clients have had to make the decision of whether to “unplug” mom or dad from life support or what medical treatment to administer to mom or dad, and they didn’t know what mom or dad wanted.  While something as simple as this is often believed to be accomplished by a medical directive or medical power of attorney, most medical directives fall short in providing the specific guidance to your loved ones in those “life and death situations”.  What is essential to know is most documents, like a Will, medical directive and financial power of attorney, grant a lot of legal authority but rarely provide any instruction as to how to carry out that authority. As estate planning experts who focus on LifeCare Planning, we will ensure that your intentions as to your health care and end of life decisions are clear for your loved ones.

What Do Families Fight Over?

Many times, families do not fight over the money left behind from an estate, they fight over what their loved one “really” wanted. The family wants to be sure they carry out your wishes, but they have different ideas of what your wishes are. Medical directives and powers of attorney grant legal authority to those you choose to make health care, legal and financial decisions for you, but they generally do not provide instructions on how to use that authority, which often leads to family controversy and frustration.

Finally, a trust, when properly done, can be used as your instructions to your family members and can lead to the granting of authority and the proper instructions to loved ones of how to use it; that is, to ensure what you want to have happen actually occurs when you are not there to do it yourself.  However, most of the typical revocable living trusts that we see on a daily basis, and other documents used by Michigan lawyers, only address some of the issues, but rarely address the more difficult issues that can lead to the destruction of families.

The Next Step…

If you really want to protect your family, you are the only one who can do it.  But first you must get educated on the options you have available and how to ensure your family know your instructions. These instructions help to prevent the heartbreak resulting from one of your loved ones having to make decisions whether you live or die, without knowing what your wishes truly were. To learn more, join us for one of our FREE LifeCare Planning Workshops. We promise that time will fly, you’ll learn a lot, and have a little bit of fun. To sign up for a LifeCare Planning Workshop click here.

And remember, the next time you wonder what estate planning is all about, it’s simple, it’s all about family!

The post Downriver Estate Planning Lawyers: All About Family appeared first on Michigan Estate Planning.

All throughout your childhood your Mother told you to eat your vegetables, clean your plate and drink your water. The classic dinner time battle is one of the oldest stories in the book. But turns out all the time your Mom spent sitting at the table watching you stare at your asparagus in protest was time well spent.

Dehydration occurs when your body dries out from lack of water and its one of the leading causes of illness among seniors. In fact the average person must drink 46 ounces of water a day in order to maintain healthy hydration. That about six 8-ounce glasses of water a day.

The amount of water you need to drink to maintain hydration may increase based on outside circumstances

According to the Mayo Clinic preventing dehydration is even more challenging as we get older.

Via Mayoclinic.com – “As you age, you become more susceptible to dehydration for several reasons: Your body’s ability to conserve water is reduced, your thirst sense becomes less acute, and you’re less able to respond to changes in temperature. What’s more, older adults tend to eat less than younger people do and sometimes may forget to eat or drink altogether.”

Preventing dehydration can be tricky especially as you age. But adding an illness or hot weather it your situation can make it that much more difficult. Be sure to take in more water if you are sick or during the summer to account for increased sweating.

Now if your one of those people who hates drinking water don’t fear. You can get some of your daily fluids from both food and beverages. Fruits and vegetables contain higher amounts of water than other food and can supplement what you drink every day.

Turns out even as we get older, yours you should still listen to you Mom. You health may depend upon it.

For more tips on elder care and safety visit www.elderadvocacygroup.info

For more information on dehydration visit www.mayoclinic.org and search dehydration.

The post Mother Still Knows Best When It Comes To Your Health appeared first on Michigan Estate Planning.

These stipulations or conditions are used to encourage the heir to conduct himself or herself in certain ways, and noncompliance means that funds won’t be distributed. It sounds kind of harsh, but there are actually a lot of positive ways you and your trusts lawyer can use this tool. For example, if you have a child who is talented in the arts, you may choose to finance her living expenses so she can pursue her passion rather than having to do unfulfilling work to make ends meet.

One of the most common ways that parents direct their trusts attorneys is to make college graduation a condition for receiving the inheritance. Those who don’t finish a degree would get a lesser amount or even nothing at all. An incentive trust could also be used to encourage heirs to travel, with funds set aside by the trusts lawyer that can be used only for this purpose. Another popular choice is to match the heir’s salary dollar for dollar or even to give more to those who choose to go into lower-paying but socially valuable jobs.

Incentive trusts are not without critics, and wills and trusts lawyers in Michigan do hear about some of the downsides of tying performance to a payout. There have actually been cases of some individuals choosing to use their estates to influence future generations to live according to the decedent’s beliefs…even going so far as to insist on a certain religion or that a child/grandchild not marry outside of his or her race! There is criticism that sometimes the trusts are too stringent and don’t allow for contingencies. For that reason, some Michigan clients have found ways to give the trustees a bit more discretion. The person creating the trust makes their wishes known but trusts the trustees to use their best judgment.

When you do want dispersal of an incentive trust to be dependent upon specific conditions, wills and trusts lawyers strongly advise clients to draft them carefully with clear language that defines each aspect of the conditions. For example, if the trust will match a beneficiary’s salary, is that before or after taxes are paid? Is a two-year degree at a technical school an acceptable alternative to a four-year degree at a university? What kind of proof needs to be provided to the trust to show that the conditions are being met?

By considering both the pros and cons of this kind of trust, you can determine how best to direct yours wills and trusts lawyer when it comes time to develop the right estate plan for you.

The post Michigan Wills and Trusts Lawyers See a Rise in Incentive Trusts appeared first on Michigan Estate Planning.

But, what about folks who are cohabitating but not legally married? The situation for them can become much more dire should one partner pass away without a solid estate plan in place. For example, even if the couple lives together in a home, if one partner dies, the other may have no legal right to the property—even if he or she helped pay for it! It is unfortunate, but estate planing lawyers in Brighton have seen far too many situations where adult children have kicked their deceased parents’ partner out of a home so it could be sold for the proceeds.

In order to avoid this kind of drama, a Brighton estate planning lawyer may recommend that assets be titled in both partner’s names, with both listed as joint tenants with rights of survivorship. There are potential tax implications to taking this step, so check with your attorney to weigh your options. It is also possible for the couple to set up a situation where a surviving partner is allowed to continue to reside in a home until his or her death, having the property then pass on to the original parter’s children.

As an illustration, pretend that Joe was married to Louise, and they had three kids together. Louise passed away, and sometime later, Joe fell in love and moved in with Kelly. Unfortunately, Joe’s now-adult children don’t approve of Joe’s relationship with Kelly. If the couple doesn’t create a legally-binding plan with an estate planning lawyer, Joe’s kids could kick Kelly out of the house upon Joe’s death.

We’ll take this a step further and say that even though they’re not supportive of Joe’s choice, he still loves his children and wants to make sure they eventually inherit the house to pay for their children’s education or whatever. But, he also wants to make sure that they cannot remove Kelly from the house out of spite or greed. Joe and Kelly could put together a plan of action with their <insert city> estate planning lawyer to stipulate that Kelly has the right to live in the house until death, and then it would become the property of Joe’s children.

This is just one scenario in which an unmarried couple would want to consider getting legal advice. Meeting with a Brighton estate planning lawyer is a good way to find out if there are concerns that you aren’t even aware you should have based on the fact that you and your partner are not legally married.

The post Estate Planning for Unmarried Couples in Brighton appeared first on Michigan Estate Planning.

Estate Planning Shouldn’t Just Be About Dying

Too often, Michigan estate planning lawyers are focusing only on what happens when you die.  Completely ignoring issues with regards to aging, disability or asset protection.  A big area of concern here is that there are missed opportunities at best or borderline malpractice at worst.

Let me explain.

With many of the estate plans that I review from lawyers across Michigan, they are preparing just a basic revocable living trust that, hopefully, avoids probate upon death.  The missed opportunities here lie in the type of trust and how the trust is set up.  What if instead of just protection against probate, we could also protect against long-term care costs and lawsuits?  We can do that.  In fact we can do that in a way that you won’t be giving up much control.  An asset protection trust that allows you to maintain control….sound too good to be true?  It’s not. We do it all the time.

The Same Estate Plan For Everyone?

Taking it a step further, I’ve reviewed estate plans from local estate planning attorneys that look absolutely no different whether it’s a health 35 year old with a young family or a 85 year old widow diagnosed with Alzheimer’s.  Where this really comes into play is in the financial power of attorney document and what powers or limitations are built into the document.  Not all documents are created equal, not all lawyers have equal knowledge.

Ignoring the long-term care aspect that most families face and focusing only on where stuff goes upon your death is one of the biggest mistakes I see estate planning lawyers and their families make….don’t make it yourself!

What is in Your Personal Care Plan?

As an estate planning law firm that focuses on LifeCare Planning, one of the key ingredients of any comprehensive estate plan is a Personal Care Plan.  A personal care plan is a document that expresses your wishes with regards to not just who will take care your health and finances like powers of attorney, but how they will care for you.  Basically what to do with you and your money if you become incapacitated.

For example, in many personal care plans we do for our clients they will express that they want to be kept at home as long as possible, or certain foods to avoid, or television shows that you like.  You might be thinking well, if I am incapacitated, why does it matter because I won’t know what’s going on anyways….but not every form of incapacity effects you mind.  Some keep you mind fully intact, but it’s your body that fails, for example Huntington’s Disease.

The Next Step…

If you would like to ensure that your current estate plan will not fail you, join us for one of our FREE LifeCare Planning Workshops that are different than your typical estate planning seminar.  It’s promised that time will fly, you’ll learn a lot, and have a little bit of fun.  To sign up for a LifeCare Planning Workshop click here.

The post Why Your Estate Plan Will Fail You During Life appeared first on Michigan Estate Planning.

This is a question we get a lot, and one we typically discuss at length with non-married parents during our planning sessions. When one of the parties of a divorce decree dies, this will end the custody agreement because there’s no longer anything to govern. In most cases, custody usually reverts to the surviving parent.

An exception to this is when one of the parent’s rights to the children has been terminated. If this is the case, many states allow third-parties, such as grandparents, to intervene. Grandparents can also intervene if they believe the surviving parent is not able to care for the children. The burden of proof would fall on the grandparents to demonstrate that the surviving biological parent is unfit. They would have to go through a lengthy custody proceeding that can be stressful on everyone – especially the children.

But, this can all be avoided…

The custodial parent can make it easier for grandparents (or other relatives) to step in after their passing with just a few estate planning steps. For starters, they can name an alternative guardian for the children in their will or trust. They can further explain their reasons for the nomination and why they believe the other parent is unfit.

Of course this doesn’t guarantee that the court will allow the guardianship, but it will certainly be a factor in the court’s decision. If the court approves the nomination of a guardian, it doesn’t sever the parental rights of the surviving parent; it simply states that the children will live with the nominated guardian instead.

The bottom line is that if you believe that your ex-spouse is not fit to raise your children, it is critical that you take the steps now to put an estate plan and guardian nominations in place that will be in the best interest of the kids should something happen to you. Call us now at (888) 390-4360 to set an appointment with an experienced Livonia probate attorney if you need assistance getting started.

The post Livonia Probate Lawyer Answers, “Will My Ex Get My Kids If Something Happens to Me?” appeared first on Michigan Estate Planning.

I am sure you have heard the cliché “If you don’t lose it, you’ll lose it”. That is especially true when it comes to older adults. As an older adult it is vital that you get some sort of daily exercise to maintain good health.

The only problem is that most people get tired just hearing the word exercise but before you it out consider this. According to the Centers for Disease Control, “Physical activity need not be strenuous to achieve health benefits.” CDC.gov also says exercise “Helps maintain the ability to live independently and reduces the risk of falling and fracturing bones.”

Obvious examples of this are short walks around the neighborhood or participating in a chair exercise program. But similar benefits can also be gained from an increase in leisure activity that could make getting some exercise a little more fun. Of course, you should always consult your doctor before beginning any exercise program.

Most communities have recreation programs that focus on seniors. Your insurance provider may also sponsor activities in your area.

These groups offer weekly and daily activities that help older folks get some physical activity in a fun way. Most programs also offer transportation to seniors who need it.

Getting some exercise is important but having fun is just as beneficial. In fact participating in recreation activities can provide even more benefit that just exercise alone. The National Institute of Health links leisure activity to successful aging because leisure activities “offer a context in which older adults can improve their physical functions, enhance positive feelings and emotions, and promote social interactions.”

Simply put an active leisure lifestyle is not only fun but its healthy too. When you are making your resolutions for the New Year, consider resolving to have a little fun this next year. Your body, mind and spirit will thank you for it.

Make sure to subscribe to our website for more information on successful aging. For more articles by Anthony Fischer visit www.elderadvocacygroup.info.

The post Staying Active Is An Important Part Of Healthy Aging appeared first on Michigan Estate Planning.

For years, many people expected to pay off their mortgage long before they died, but the current financial landscape paints a much different picture, especially as more and more seniors take out mortgages and home equity loans to cover cost of living expenses. An analysis of data from 2001 – 2011 showed the number of homeowners aged 65 and over who held a mortgage increased from 22% to 30%, while homeowners aged 75 and over who held a mortgage more than doubled from 8.4% to 21.2%. These startling figures may prompt estate planning clients in Livonia to ask themselves, “What happens to my mortgage if I die?”

The simple answer to that question is that after you die, the mortgage belongs to whoever inherits your house. The complications arise when it comes time to determine how exactly the mortgage will be paid off. Below are some common scenarios that Livonia estate planning attorneys have seen when a person dies while holding a mortgage.

Your Estate Pays of the Mortgage

This may be the most desirable scenario, though it can only occur through careful legal and financial planning. In order for the estate to pay off the mortgage, the estate must of course have enough assets to cover the debt. This may leave your beneficiaries with less cash distributions, but they will own the house free and clear. It is possible to make a provision in your Last Will or Trust to have the mortgage paid through estate or trust assets, but it is recommended that you consult with a Livonia estate planning attorney to determine what your situation is and how to best address it.

Your Beneficiaries Pay of the Mortgage

Of course, beneficiaries may already have mortgages of their own, so this could lead to some complications. If the beneficiaries are willing and able, they may take over the monthly mortgage payments for your house. In this case, your beneficiaries could refinance to get a better interest rate on the mortgage. If your beneficiaries already own their own home and have a mortgage, they could sell either their home or the inherited home to pay off the respective mortgages.

If the property is worth less than the value of the mortgage, confer with the lender to see if a short sale is possible. If the lender agrees to a short sale, the home would be sold for less than the value of the debt, but the estate would not be held liable for the difference or loss. You can discuss these possibilities with a Livonia estate planning lawyer to determine what may be the best course of action to take.

It is important to review both assets and debts with your Livonia estate planning attorney when forming your estate plan. Please contact us immediately at (888) 390-4360 to set up a consultation so we may review your estate planning options.

The post Livonia Estate Planning Lawyer: What Happens to Your Mortgage After You Die? appeared first on Michigan Estate Planning.

As recently as 2011, the Wall Street Journal reported that ten states had accused insurance companies of intentionally withholding unclaimed money from deceased policyholders’ families. In the same article, the WSJ wrote, “state treasurers currently hold $32.9 billion in unclaimed bank accounts and other assets.” Obviously, if people knew there was money to be claimed they would claim it. Failure to plan and organize affairs before the time of death, however, leads to confusion and sometimes a loss of everything you’ve accumulated over the course of your life. The passing of a family member is already overwhelming enough without the added pressure of sorting through files, papers, and storage containers

What to Store:

The more centralized the storage, the better. A great option is a portable fireproof safe. Be sure to include:

• List of insurance policies and company contact information.
• List of outstanding debts along with payments made and contact information.
• List of bank accounts.
• Copy of durable power of attorney and living wills.
• Copy of each of your wills with location of the originals.
• Copy of safety deposit keys.
• List of investments and retirement accounts.
• List of health providers, prescriptions, and doctors.
• Copy of social security number with an original in a bank deposit box.
• Birth Certificate, copy or original.

If you have things in more than one place, make a physically printed, or a flash-drive stored, list of the places your important documents are. Also, within this list, include a checklist of things you want your family to have access to so they know they aren’t missing anything when they do go over it. Give a copy or a flash-drive to those you trust or to be even safer, give the list to your lawyer who will share the information with your family in the event of your death.

Different types of Documents:

Maybe you know what each type of document does, but in case you don’t remember, here’s a quick reminder:

• A will or a trust allows you to dictate who your money/property goes to after you death. You’ll want to store an original copy in a very safe place, keep it with an attorney.
• A living will allows your medical wishes to be carried out if you are incapacitated. This allows you to decide on whether or not you’d want to be kept on life support, which takes tremendous pressure off of your family members if they ever find themselves in that situation.
• A durable power of attorney for health gives you the chance to name someone you trust to carry out medical decisions if you are unable to make them for yourself. There is also a legal version of the durable power of attorney, which allows someone to act on your accord if you cannot make your own legal decisions due to Alzheimer’s, dementia, or anything else that may happen.
• A general power of attorney gives your beneficiary the authority to act for you legally until you become unable to make your own decisions.
• Bank registration allows your spouse or child to access your bank accounts after you die along with any safe deposit boxes. This makes it more convenient because if their name is not registered with the bank they will need to go to court to gain legal access.
• House/land ownership deeds, stocks, bonds, vehicle titles, and mortgage accounts are self explanatory, but be sure to let your family know you own these things so they will not be overlooked. If they are unaware of these assets they may never find them.

Again, I know it’s hard to imagine the scenario of your death, but if your family depends on you financially, then the normal family grief could be turned into a financial nightmare. Owning multiple homes, cars, a large stock portfolio, retirement accounts, or bonds can make this process extremely difficult. The earlier planned the better. Preparation on your part will ensure your family is taken care of even after you’re gone.

Max Gottlieb is the content manager of both Prime Medical Alert and Senior Planning in Phoenix, Arizona. Prime Medical Alert allows seniors to age in place while Senior Planning offers free aid to seniors looking for benefits, new housing, or care options.

The post Organizing Affairs Before It’s Too Late appeared first on Michigan Estate Planning.

Oftentimes, a safe deposit box at your bank is the perfect place to keep these kinds of assets. Obviously, you can’t keep a home or a piece of property in a metal container at your financial institution, but the related deeds and titles can definitely be safeguarded in a safe deposit box. Birth certificates, marriage certificates, divorce decrees, death certificates, and military records are just some of the documents that should be safeguarded. However, you may find that you need access to them more often than is convenient to get them from your safe deposit box. A good trust attorney in Brighton should be able to guide you when it comes to which documents need to be kept at home and/or which ones may only require a copy at home while you keep the originals in your safe deposit box.

Who Can Access Your Safe Deposit Box?

One of the main reasons to rent and use a safe deposit box is because access to the contents is very limited. Other reasons include the fact that valuables are much less likely to be stolen or destroyed in a home invasion, fire, or natural disaster. It is possible to allow others access to your safe deposit box, and there are times when it can be a good idea. For example, the person you and your estate planning lawyer designate as the executor of your estate may be better able to do his or her job with access. Keep in mind, though, that the act of making them an executor of the estate can be enough to allow them access, although they will need the correct documentations and possibly a copy of your death certificate.

Additionally, someone you’ve given financial power of attorney may also be granted access in order to manage your affairs should you become incapacitated. In order to do this, you will need to follow the procedure laid out by your bank, which usually includes appearing in person with the other party so everyone can show identification and the new person can sign a signature card. This does mean that this person can access the safe deposit box any time, whether you are present or not, so there is some potential risk. Take care to thoroughly discuss the pros and cons with your trust attorney in Brighton before giving authority to access your safety deposit box to others.

The post Brighton Trust Attorney: Tips When Storing Valuables and Documents in Safe Deposit Boxes appeared first on Michigan Estate Planning.

The VA will only pay for or subsidize veterans who need nursing home care due to a service-connected disability or any vet with a combined service-connected disability rating of 70% or more and who need skilled nursing care. The VA only provides nursing home care for individuals in other categories IF beds and resources are available.

Limitations of VA Nursing Homes in Michigan

One of the biggest limitations of VA Nursing homes, even if you qualify in Michigan is their location.  In Michigan there are two VA Nursing Homes in the whole state.  There is is one in Marquette and the other is in the Grand Rapids area.  Not very helpful if your loved one is a Veteran in the Brighton, Livonia, Metro-Detroit area.

Furthermore, you can’t just decide you are going to a VA nursing home, even if you believe you meet the level of care and rating requirements. There is a process to be evaluated for VA nursing home care. You must first be enrolled for Veterans Health Benefits, which is another process in and of itself and can include an evaluation of income and assets.  Then, once enrolled with the Veterans Health Administration, you must then be evaluated by a primary care provider or a geriatric specialist for nursing home care.

Moreover, if you are a surviving spouse of a Veteran you may not qualify for a VA Nursing Home at all.

You can learn more about VA Care at their website.

VA Benefits for Nursing Home, Assisted Living and Home Care

Now the VA will not pay your entire nursing home, but there is a VA Benefit that will help pay for home care, assisted living or nursing home care called the Aid & Attendance Benefit.

This year the VA Aid & Attendance Benefit maxes out at $2,120 per month.  Now this will not cover the whole cost of nursing home care, which can run over $12,500 per month in Michigan, but it will help ease some of the burden, especially of assisted living or home care.

Medicaid and VA Benefits Together

Typically, if you are a veteran or surviving spouse of a veteran we, at The Elder Care Firm, will help families link their VA Benefits and Medicaid by initially qualifying the family for the VA Benefit when they need home care or assisted living.  However, once the loved one transitions to a nursing home, we will help them qualify for Medicaid by sheltering their resources.  The net effect is until the family needs nursing home care, we help bring in up to $2,120 per month, then once nursing home is needed, Medicaid picks up a majority of the nursing home cost.

Planning ahead for VA Benefits and Medicaid

The earlier a family starts planning for a Veteran or surviving spouse of a veteran, the more options are on the table as the loved one navigates the long-term care journey.  Often, as VA Accredited Elder Law Attorneys, we utilize special asset protection trusts to help qualify for the VA Benefit or Medicaid.

The post Will The VA (Veteran’s Administration) Pay My Nursing Home Care appeared first on Michigan Estate Planning.

Luckily, surviving spouses have some leeway. It’s still tricky to transfer from spouse to spouse. But the rules for spouses are different than non-spouses.

If you have more than one child, it may seem logical to name the estate as beneficiary. This is not always a good idea. In this case, your children will be required to take all of the money out of the IRA by the end of the fifth year after your death – missing the opportunity to accumulate interest and enjoy the tax sheltering benefit.

Owners of traditional IRAs must start taking required minimum distribution (RMD) when they turn 70 ½. Non-spouse beneficiaries must start taking RMDs upon inheriting. This means you can’t leave the entire amount in the account, allowing it to draw interest. The penalty for not taking RMDs on time is steep. A full 50% penalty on the amount that should have been withdrawn for the year!

Non-Spouse IRA Planning

Unfortunately, non-spouse beneficiaries can’t roll an inherited IRA into their own IRA. A separate account Inherited IRA must be set up and titled so that it includes the decedent’s name and the name of the person inheriting an indication of the purpose of the IRA. For example, it might say, “Rhonda Smith (deceased January 7, 2015) IRA for the benefit of Roy Smith.” If the account is split among beneficiaries, the original IRA must be split into separate IRAs and each one must be titled in the same manner.

To avoid this pitfall, name your children as beneficiaries of the IRA, and not the estate. By doing so, they will have a lot more flexibility. They can take annual distributions based on their own life expectancy which allows them to leave the money in the account and defer taxes.

Roth (not traditional) IRAs can usually be withdrawn tax-free. But, they’ll be prohibited from depositing them into their own IRAs and they’ll have to pay taxes on the whole amount.

Name Your Revocable Living Trust Beneficiary of your IRA?

The question of whether to name your trust as a beneficiary of your IRA money commonly comes up.  Unsophisticated estate planning lawyers or financial advisors will recommend you not to name your revocable living trust as a beneficiary.  However, if your trust is drafted properly, with the right language inside the trust, then naming your living trust is absolutely the best choice.

Legal and Financial Planning for Howell Clients

These issues above are just some of the traps you can fall in when inheriting an IRA. When it comes to transferring IRAs, it is critical to seek the advice of a qualified, experienced estate attorney in Livingston County. They can help you decide whether or not to withdraw the funds, set up a standalone retirement plan trust or set up an Inherited IRA.

If you have questions about how to inherit an IRA or if you want to make sure the beneficiaries on your IRA are set up correctly, give our Howell estate planning law firm a call at (888) 390-4360 for assistance.

The post Common Pitfalls of Non-Spouse Inheriting IRAs | Howell Estate Attorney appeared first on Michigan Estate Planning.

Mom is Going to Be Discharged, Now What?

The first step is to have a care plan.  Often we’ll bring in an Elder Care Coordinator to assist with putting together a discharge plan because often, the hospital or rehab facility will just say “Mom’s being discharged next week, you figure it out…”  We need to find a community for mom, and find one as soon as possible.  There are a lot of factors that go into finding an appropriate care facility.  One of those factors includes how will the family pay for the long-term care. For example, if its a skilled nursing home, do they have Medicaid beds available, or do they play the game of not having beds available until your private pay for a period of time?

Michigan Nursing Home Medicaid Explained

First it is important to understand what Michigan Nursing Home Medicaid is.  Michigan Nursing Home Medicaid is a jointly funded, Federal-State health care program for persons who are financially eligible. Medicaid provides care for acute medical needs, rehabilitation, and long-term care mainly in skilled nursing facilities.

Michigan Nursing Home Medicaid Asset Limit and Look back Period

Medicaid has an asset limit where a individual can only have $2,000 in countable assets if they want to qualify.

Most people think that they have to give all their assets away to qualify for Medicaid in Michigan, however, that is not the case.  While there is a 5 year look back, meaning Michigan looks back 5 years to see if you moved money around and will penalize you if you did; there are a variety of “crisis” plans available to Certified Elder Law Attorneys where they can help families protect money well inside that 5 year window.

How To Protect Mom’s Assets from Michigan Medicaid Nursing Home Spend down

When we met with the family to talk about protecting their mother’s assets, we reviewed a plan that would protect over half of her assets.  She had roughly $150,000 in countable assets at this point and was entering a nursing home within a week with a $8500 per month bill.

Option 1.  Spend $8500 a month until their mother ran out of money and ran out of options.  There would be no funds to improve her quality of life, pay for additional caregivers or services.  She’d be flat out of options.

Option 2. Engage in a Medicaid Crisis plan where we would shelter over half of her assets, while the other half would have to goto the nursing home over a period of months to cover her divestment penalty.  By engaging in the is planning the family was able to keep over $80,000 in assets that would not have to go directly to the nursing home and qualify for Medicaid within half the time by submitting a Medicaid application immediately.  Also in this situation, their mother was the surviving spouse of a veteran and we were able to bring in an additional $1,120 per month, tax free, to help pay her cost of care during the private pay period.

The Next Step if You Have a Loved One in a Nursing Home

If you have a loved one in a nursing home and are concerned about them running out of money, have them contact our Michigan Medicaid Planning Lawyer office immediately at (888) 390-4360, because every month you wait your family is losing thousands of dollars a month.

The post How To Protect My Mom’s Assets From Nursing Home Spend down in Michigan? appeared first on Michigan Estate Planning.