Redkey Gordon P.C.

Do I Really Need Estate Planning? YES! Stop Avoiding This Important Part of Life

Have you thought about dying lately? Most of us don't. Make sure you do some estate planning today before things get complicated.

End-of-life planning is not a fun topic to think about. Nobody wants to think about passing away, but is that going to change the inevitable? Not a chance.

A recent article in The Huffington Post, titled “Why We Avoid Estate Planning,”gives us reasons most of us avoid estate planning:

I just don't have the time. This is kind of a lame excuse … everybody’s busy. However, there are some things that are so important you have to take the time to get them done—like estate planning. At the head of this important task are naming your beneficiaries and an executor.

I don't want to think about dying. Who does? The original article says this is one of the most common reasons people don't create an estate plan with an estate planning attorney. Do this right now while you’re healthy. Think about who will get custody of your minor children, who gets your money, and your funeral arrangements. Some of us don’t like flossing or balancing our checkbook, but it’s the smart thing to do and saves us, let alone our families, avoidable headaches in the future.

I don't understand it. Ok, that sounds like a good reason. But this is no reason to neglect your estate planning. An attorney can examine your estate and educate you on your options. Ok, you may not need a complicated trust, but you certainly should have a will. Do not forget your legal planning for incapacity, too. What if you become incapacitated from an accident, who will pay your bills and make key decisions regarding life support? This really should be simple enough to answer with the help of an attorney.

I don't really have much of an estate. It may not be just about money. Your estate planning attorney can help you with all of the issues. Without a will or a named beneficiary, the probate process can be a nightmare for your survivors.

Make sure you do your estate planning today! Contact Robert A. Gordon or Redkey Gordon Law Corp, an experienced estate planning attorney.

Reference: Huffington Post (February 27, 2015) “Why We Avoid Estate Planning”

Guardianship Lessons for the Elderly

Although many people feel frustrated by elder guardianship systems designed to protect adults no longer able to fend for themselves, what’s even sadder are the many instances where it turns out that the elder guardianship system is doing its job properly –and strangers have no choice except to step in and make decisions that families and friends simply cannot.

Elder guardianship can be complicated. Many question if our elderly loved ones are getting the proper care they deserve in those situations.

The (Sarasota, FL) Herald-Tribune, in a recent article titled “The takeaway lesson on elder guardianship,”says that one woman contacted the newspaper writer from an assisted-living facility, saying she had been incarcerated against her will. She moved to be closer to her son, but her daughter in Arizona had her under guardianship, which permitted limited contact with her son.

After the journalist spoke with both of them and read the court filings, it appeared the woman didn’t need to be locked away. She might be better off moving in with her local son and his family, who were willing to care for her. However, later it was revealed that this son was convicted of securities fraud.

Unique issues in a family can create wrinkles that are unforeseen.

Many efforts around the country are concentrated on legislative efforts to improve elder guardianship, and to ensure the process is implemented only in cases where other attempts to help have not succeeded.

It’s best to start early. Make legal plans now, so there will be no drama should you need help mentally or physically in the future. Who do you trust to take care of such matters for you?

Contact Robert A. Gordon of Redkey Gordon Law Corp, an experienced elder law attorney to help you. He understands these issues and can work with you and your family to find the best resolution.

Reference: The (Sarasota, FL) Herald-Tribune (February 27, 2015) “The takeaway lesson on elder guardianship”

Get These Documents in Order before Dementia Strikes

Accounting for the possibility of your own and your loved one’s eventual mental incapacity is a key part of any estate plan. If your loved one appears to be showing signs of diminishing mental acuity, ask if he or she has the proper documents in place. If so, find out who his or her agent(s) are so that you can alert them.

What if you or a loved one develops dementia? If you didn’t have the mental capacity to take care of yourself or your finances at some point, what would happen? You need to be prepared.

A recent articlein Physician’s Monthly Digest, titled “Dealing With a Loved One’s Cognitive Decline Is Simpler with Right Legal Documents in Place,”says that a healthcare proxy and a durable power of attorney are key legal documents to have before there are any signs of mental incapacitation. The documents allow you to designate another person to make medical and financial decisions on your behalf once you are unable to do so. This can be your spouse, an adult child, a friend, or a trusted adviser. Without a power of attorney, your spouse will need a court order to access any non-joint accounts that you have.

You should also draft a living will, or advance directive. That way your agent and your healthcare staff will have your instructions as to whether to administer life-sustaining medical treatment if you are in the late stages of dementia, terminally ill, or near death. The living will can take the burden off of your loved ones when it comes to making tough medical decisions like whether to keep you on life support or not.

You should also entrust someone else with the power to take control of your affairs with a healthcare proxy and power of attorney. These documents will only become effective when your medical staff decide you lack the wherewithal to make medical and financial decisions for yourself. The laws for these type of documents vary from state to state, so talk to an experienced elder law attorney about how it works where you live.

The original article also recommends that you make sure your loved ones not only know about these important documents, but also where you keep them. You should give copies of the executed documents to your appointed agents, and give copies of your healthcare proxy and living will to your healthcare providers. This simple step can help your doctors ensure that your wishes are respected.

Ensuring that you have the appropriate documents in place will give peace of mind to you and your loved ones. Contact Robert A. Gordon or Redkey Gordon Law Corp, an experienced elder law attorney. He can help you define your goals and can draft the documents accordingly.

Reference: Physician’s Monthly Digest (February 27, 2015) “Dealing With a Loved One’s Cognitive Decline Is Simpler with Right Legal Documents in Place”

Jon Bon Jovi Farms, so Why Can’t You? Get the 411 on Property Tax Breaks

People who own as little as three acres and engage in agricultural practices such as hay harvesting, bee keeping, chicken raising, and designating land for grazing animals may find themselves rewarded by localities with an enormous discount of up to 95% on property taxes. This tax break -- available in all states except Michigan -- has made for some surprising members of the nation’s farming community. Consider Malcolm S. Forbes Jr., Jon Bon Jovi, and former New Jersey Gov. Christie Whitman, among many other famous business folk, celebrities, and politicians with a sideline in farming.

While most tax breaks for landowners occur in a single year, according to a recent Barron’s article, property-tax discounts awarded for agricultural activities are “reaped” annually, just like soy beans, corn, and alfalfa. Barron’s talks about these land tax breaks and more in an article titled “A Harvest of Land-Related Tax Breaks.”

Taxpayers using their land to grow timber can find benefits beyond the property-tax break:  Timberland is great for wealth preservation. Even when land values or the demand for timber tails off, the trees on your farm continue to grow. Experts say that timber growth can provide an annual return of roughly 2% to 6% a year, and once you sell your timber, your profits are taxed as capital-gains, instead of higher income tax rates. It’s only when you manufacture products like pulp or poles from your timber crop that income tax will apply.

Consider a conservation easement as another vehicle from which to generate a substantial income tax deduction. How does this work? A conservation easement is a portion of land earmarked as off-limits to development, so you would see an income tax deduction equal to the value of the land assigned to the easement when it was created. The estate planning benefits are also worth noting: this easement depresses the value of the property, so when it’s subject to estate taxes in the future, this will be at a lower value. The property’s value will also be reduced when you sell. Be sure to consult with an experienced estate planning attorney about these scenarios.

If you plan on passing your land to future generations, you might be able to discount the value of your property for gift and estate tax calculations, but you need to start the property transfer process during your lifetime. Again, your attorney can help you. Make an appointment now to buy the farm before you “buy the farm.” Contact Robert A. Gordon of Redkey Gordon Law Corp, an experience estate planning attorney for further assistance.

Reference: Barron's (February 28, 2015) “A Harvest of Land-Related Tax Breaks”

A Father’s Wish for a Proper Military Burial Is Finally Granted, Thanks to Daughter

Until Feb. 20, when Missouri state authorities intervened to help Yvette James get control of her father's remains, James was stuck in a nightmare of red tape. All she wanted was to rightfully fulfill her father’s burial wishes, something she should have legally been allowed to do from the get-go.

It seems Yvette James was wrongly excluded from her father’s burial planning due, in large part, to her own military service. Even though she has the right to make those decisions under state law as the primary next of kin and only child, a funeral home allowed her cousin to make arrangements for the service and burial. This story was told in The Army Times, in an article titled “Soldier fights for right to bury her father.”

The cousin wanted to bury James’ father at a veterans’ cemetery in St. Louis. However, James wants to have her father cremated and buried at Arlington National Cemetery, as she plans to retire in Maryland. As James put it: "Arlington is the ultimate cemetery. My dad was so proud of his service. That's all he talked about. He did four years, and you'd think he did 30. He loved the Marines."

Until state authorities stepped in to help her get control of her father's remains, James was stuck in miles of red tape. The funeral home refused to speak with her, and she later discovered that a funeral was held for her father without her knowledge or input.

While this scenario may be unusual, disagreements concerning a loved one’s death, funerals, and burial arrangements are not. State laws in this area differ significantly. With service members often living far away from their parents, the military may need to give more legal assistance so families can deal with these kinds of issues, according to the original article.

After learning that a burial for her dad had already been arranged by James' cousin, the federal government immediately contacted the Veterans Affairs National Cemetery Administration and put a stop to the burial. It declared that James certainly had the legal right to decide how her father would be buried.

James told The Army Times that she took military leave to travel to St. Louis and settled matters with the burial. Investigators with the Missouri State Board of Embalmers and Funeral Directors called her and asked her to speak with them at the funeral home. She was then able to arrange for the transfer of her father's remains to another funeral home in preparation for interment at Arlington National Cemetery.

After all this, James admitted that she was "exhausted," but also relieved that finally she received proper recognition as her father's next-of-kin and could help him with his wishes for burial as a veteran.

If you are a veteran or the loved one of a veteran, then make sure you know where the DD 214 form is kept so funeral and other benefits can be arranged.

For more information about military burial rights, visit the U.S. Department of Veterans Affairs website. Also contact your local area experienced estate planning attorney, Robert A. Gordon of Redkey Gordon Law Corp for further assistance.

Reference: The Army Times (February 28, 2015) “Soldier fights for right to bury her father”

You just never know....

http://blogs.findlaw.com/injured/2014/01/gordon-ramsay-restaurant-sued-over-burger-injury.html

 

 

“The Widow Lincoln” Sheds Light on Financial Lessons for Widows

As Mary Todd Lincoln’s character in “The Widow Lincoln” faces dozens of unpaid bills for home furnishings, clothes and jewelry, she asks, “How will I ever pay these debts? I am nothing. I am no one.” On top of moving out of the White House, mothering her sons and moving forward with her life, Lincoln must deal with all these financial stresses. She no longer has her husband to rely on for emotional support, income or an identity. It’s a crisis many women in the 21st century face, too.

A recent article in U.S. News & World Report, titled “Modern Money Lessons from Mary Todd Lincoln,” reports that experts recommend participating in money management throughout marriage and preparing for the possibility of one day being on your own, like many women eventually are, due to divorce or death.

Becoming a widow often means a drastic change and a new way of life, whether in 1865 or 2015. For many, it means understanding how to manage finances by yourself and experiencing less income, along with debilitating grief. 

The original article urges women to know their money thoroughly, regardless of life stage. Keep all financial paperwork, experts says, including estate planning documents, well-organized and easily accessible.

For example, couples should be able to answer these questions long before retirement:

• If my spouse were to die, how would that affect the household’s income?
• What would an expensive illness do to our retirement savings?
• If either spouse were to die, would the survivor be prepared to take over the management of the finances?

Both spouses need to have a basic grasp of monthly costs, saving and investment strategies, and the way to get to their funds quickly in an emergency. In addition, here are some tips for widows from the original article:

Replace Any Lost Income. Losses sustained from a pension, Social Security, and a spouse’s salary losses may be buoyed by the proceeds from a life insurance policy or other sources of money. Term life insurance, especially for young, healthy people, is relatively cheap. Consequently, it may make sense to purchase a 20- or 30-year policy before you reach your 40s.

Select Your "Trusted Person." Single seniors should have an individual who’s able to make financial decisions for them in case they become incapacitated.

Manage Your Financial Risk. Studies show that women tend to invest more conservatively than men. While spouses tend to balance each other out, when women become widows, it can mean that they might be overly cautious in their investments, creating a risk to inflation.

Experts also generally recommend holding off on any big moves during the first year following a spouse’s death, since the grieving process can interfere with good decision-making. Mrs. Lincoln could barely manage day-to-day tasks and wasn’t willing or able to leave the White House for more than a month after Abe died.

This story might be 150 years old, but its lessons still resonate today.

Contact Robert A. Gordon of Redkey Gordon Law Corp, an experienced estate planning attorney and be prepared come what may.

Reference: U.S. News & World Report (February 23, 2015) “Modern Money Lessons from Mary Todd Lincoln”

Divorced? Time to Update Your Estate Plan and Beneficiaries

Failure to do so — or to alert all relevant parties to the changes — could result in certain assets and benefits unintentionally going to your former spouse or his or her family upon your death.

A MarketWatch article, titled “Just divorced? Don’t forget to separate your estate plans,” shares a true life story of why we all need to pay close attention to our estate plans after a divorce.

Robyn Lewis executed a will in 1996 that named her then-husband to receive her property after her death. The property included the house—a home that had been in her family for generations. In her will she designated her then-father-in-law as the secondary beneficiary. Robyn ended up divorcing her husband, but no record was found of a change in her secondary beneficiary after the divorce.

Robyn passed away five years ago, and guess what? Her ex in-laws stand to inherit a $200,000 home even though she and her husband divorced eight years ago.

New York’s probate laws stipulate that a divorce automatically cuts out the ex-husband from a will. However, the laws do not cut out the secondary beneficiary—in this case, Robyn’s ex-father-in-law. He brought a copy of the 1996 will to the court.

Robyn’s family claims that she wrote a new will after her divorce that changed the beneficiaries, but they can’t find it to prove the change. As a result, last year a New York appellate court decided to uphold the 1996 will. Lawyers for Lewis’s family are appealing.

The lesson here is to stay on top of your estate plans. For Robyn (before she passed) and her family, it means drafting that new will and making sure that key individuals have a copy or know where to find it. Be certain that all of your estate planning documents— not only your will—but your power of attorney and health care proxy—clearly state your wishes and intentions.

Divorcing couples who have used an estate planner are counseled to work individually with a new attorney to avoid conflicts. A qualified estate planning attorney will ensure that new documents designate the correct individuals and state that they revoke and replace the older documents. Remember, beneficiary designations also should be reviewed and changed. The proceeds from these accounts and policies pass directly to the named individuals—regardless of what a will may say. The original article suggests that you obtain written confirmation from an insurance company that they received and made your beneficiary changes.

In addition, IRA money can be divided and rolled over into separate accounts by sending a letter to the plan administrator with proof of the divorce. Qualified retirement plans, however, such as company-sponsored ones, take a little more planning. Speak with your attorney about how to go about doing this because it involves a court order called a Qualified Domestic Relations Order. This gives you the right to a portion of the spouse’s 401(k) or other qualified-plan assets, pursuant to the divorce settlement.

Find out more by speaking with Robert A. Gordon, an experienced estate planning attorney from Redkey Gordon Law Corp.

Reference: MarketWatch (The Wall Street Journal) (February 23, 2015) “Just divorced? Don’t forget to separate your estate plans”

Mr. Cub’s Dementia Causes Much Debate over Estate

Ernie Banks died on January 23rd at age 83 from a heart condition.  Interestingly, his death certificate listed dementia as a “significant condition contributing” to his death.  Why is that important? Well, three months before he died, Banks signed a new set of estate planning documents, including a power of attorney, healthcare directive, new will, and a trust.

Ernie Banks signed a new set of estate planning documents that left his caregiver and talent agent, Regina Rice, in control of everything. This new will and trust totally left out his family members and named Rice as his sole beneficiary. Rice would stand to inherit not only whatever assets and wealth Ernie Banks accumulated during his life, but the right to control (and profit from) his name, likeness, and image.

Since Banks had dementia and made these changes a mere three months before his death, his children are planning to take Rice to court over Banks’ estate.

Forbes reports in a recent article, titled “Estate of Ernie Banks In Turmoil As Caregiver Claims To Be Sole Heir,” that the Banks children are claiming Rice coerced their father to sign the new estate planning documents, by controlling and manipulating him, using her position of trust and confidence to take advantage of his dementia to their detriment.

The parties already have been slugging it out over Mr. Cub’s wishes. Banks said in multiple past interviews that he wanted to be cremated when he died and have his ashes spread over Wrigley Field. His ex-wife, along with his children, sued to stop the cremation and won the right to have Banks buried. Interestingly, even though the couple was estranged and in the middle of divorce proceedings, Banks’ wife still was considered his next of kin, which gave her the right to control his burial arrangements.

As far as the fight over controlling his image and inheriting his assets, the Forbes article points out that it will certainly be much more complex and drawn out than the duel over how to bury the baseball great. Individuals can leave their assets to whomever they want, but they must be of sound mind and free from what the law calls “undue influence.” Families often fight over whether a will truly represented the decedent’s wishes, or whether it was signed under coercion, manipulation, fraud, or other improper influence.

Since Rice was in a position of trust over Banks, the law says that it is assumed on a preliminary basis that she did exercise undue influence. She’ll need to show that she did not commit undue influence, instead of the children being required to prove she did.

Although it remains to be seen how this will end, it’s already certain that this is a tragedy for the legacy of a baseball icon. Unfortunately, this isn’t uncommon. This type of fighting and court action occurs frequently up and down the economic ladder.

You can prevent an estate battle in your family with the help of Robert A. Gordon, an experienced estate planning attorney of Redkey Gordon Law Corp, long before a loved one has dementia or is possibly mentally incompetent.

Reference: Forbes (February 19, 2015) “Estate of Ernie Banks In Turmoil As Caregiver Claims To Be Sole Heir”

Family Feuds over Multimillion Dollar Estate

Dr. Richard Grossman amassed his fortune as the founder of the Grossman Burn Center in Los Angeles, one of the first to use a hyperbaric chamber to prevent infections in burn victims and speed their recovery. He retired from his medical practice in 2013. Lawyers for his children and widow now disagree on what Grossman intended to do with that wealth before he died.

If you aren’t crystal clear on your wishes in your estate planning documents, you may leave behind much speculation after you pass.

A recent article in the Thousand Oaks (CA) Acorn, titled “Battle over Grossman estate intensifies,” describes the contentious fight over a noted physician’s estate between his wife and his children from a previous marriage. With all of the assets going to the wife, the children assert that the doctor had advanced dementia and wasn’t able to make his own decisions.

The children are claiming that the doctor and his wife had a prenuptial agreement when they married in 2000 that kept the property of each separate. The children are seeking to keep her from selling Grossman’s main asset, Brookfield Farms. They believe that the doctor wanted to keep the estate in his family. They want the estate to be distributed in trust for the benefit of the doctor’s grandchildren and one of his children suffering from a neurological condition who needs family support to care for him.

Whether you own a million-dollar farm or a modest home in the suburbs, avoid fights like the Grossmans’ and seek out the assistance of Robert A. Gordon, an experienced estate planning attorney from Redkey Gordon Law Corp, to make sure that your intentions are clear and carried out.

Reference: Thousand Oaks (CA) Acorn (February 19, 2015) “Battle over Grossman estate intensifies”