When the wealthy financier, Jeffrey Epstein, died under mysterious circumstances (the Medical Examiner determined that is a suicide, but many people are skeptical), he left behind a huge fortune close to $600 million, along with creditors and lawsuits. Just two days before his death, he signed his Will, which left his estate to his trust, the 1953 Trust. Because that Trust is not filed with the Court, its contents should remain private, barring litigation involving the Trust’s beneficiaries or trustee’s duties. In the Will, Epstein is listed as a resident of the U.S. Virgin Islands. After his death, his Will was filed in the U.S. Virgin Islands, probably because his attorneys thought the probate process would be more private. For regular people who are not rich or famous, privacy is still a huge…Read More
Whether it’s called “The Great Wealth Transfer,” “The Silver Tsunami,” or some other catchy-sounding name, it’s a fact that a tremendous amount of wealth will pass from aging Baby Boomers to younger generations in the next few decades. In fact, it’s said to be the largest transfer of inter-generational wealth in history. Because no one knows exactly how long Boomers will live or how much money they’ll spend before they pass on, it’s impossible to accurately predict just how much wealth will be transferred. But studies suggest it’s somewhere between $30 and $50 trillion. Yes, that’s “trillion” with a “T.” A Blessing Or A Curse? And while most are talking about the benefits this asset transfer might have for younger generations and the economy, few are talking about its potential negative ramifications. Yet…Read More
This article is part of a series discussing the true costs and consequences of failed estate planning. The series highlights a few of the most common—and costly—planning mistakes we encounter with clients. If the series exposes any potential gaps or weak spots in your plan, meet with us to learn how to do the right thing for the people you love. If you’re like most people, you probably view estate planning as a burdensome necessity—just one more thing to check off of life’s endless “to-do” list. You may shop around and find a lawyer to create planning documents for you, or you might try creating your own DIY plan using online documents. Then, you’ll put those documents into a drawer, mentally check estate planning off your to-do list, and forget about them. The…Read More
One day you may not be able to make your own medical decisions. That’s why we recommend that you plan ahead. A lot of people are confused about the differences between a living will and a “do-not-resuscitate” order (DNR). While both these documents are advance medical directives, they serve different purposes. A living will is a document that you can use to give instructions about your medical treatment if you become terminally ill or are in a persistent vegetative state and unable to communicate your instructions. The living will states under what conditions life-sustaining treatment should be terminated. If you would like to avoid life-sustaining treatment when it would be hopeless, you need a living will. A living will takes effect only when you are incapacitated and is not set in stone. You…Read More
Parents want their children to be taken care of after they die. But children with disabilities have increased financial and care needs, so ensuring their long-term welfare can be tricky. Proper planning is necessary to benefit the child with a disability, including an adult child, as well as assist any siblings who may be left with the care taking responsibility. Special Needs Trusts The best and most comprehensive option to protect a loved one is to set up a special needs trust (also called a supplemental needs trust). These trusts allow beneficiaries to receive inheritances, gifts, lawsuit settlements, or other funds and yet not lose their eligibility for certain government programs, such as Medicaid and Supplemental Security Income (SSI). The trusts are drafted so that the funds will not be considered to belong…Read More
In August 2018, music legend, Aretha Franklin, died of pancreatic cancer. At her death, her estate was worth over $80 million and it appeared that she died without a will or trust. (We wrote about this in this article here.) Recently, we learned that three handwritten wills were found in her home. The latest one is dated March 2014 and it was found inside a spiral notebook, under cushions. The document appears to give the famous singer’s assets to family members. However, the writing is difficult to decipher and there are words scratched out and notes scribbled in the margins. It is unclear if this is a valid will under Michigan law. A court hearing is scheduled next month to determine the validity of that document. Even if the Court determines that the…Read More
"When the parents are gone, there’s all kinds of unforeseen stuff they leave us with, stuff they never intended.” – Ira Glass, in This American Life, Episode 763: “Left Behind” If you grew up with siblings, you probably remember some sibling rivalry. That rivalry can continue well into adulthood, especially after the parents are gone. In many families, parents are like the glue that keeps the family together. Once their gone, old issues can resurface, especially when it comes to dividing the parents’ personal property. That’s why it’s important to have a plan for how you want your personal, sentimental property distributed to the people that you love. If you don’t, that can make an already tough situation so much worse. This American Life, a popular podcast, recently featured a family with such…Read More
Living in the digital age, having online access to investments is a great convenience. But the downside is that they can create a very difficult situation for a surviving spouse or executor trying to find the deceased’s assets. What is the first thing you are told about any password? Don’t write it down. This can create unintended consequences for an executor who needs access to each account in order to marshal the assets and eventually distribute those assets to the heirs or trustees based on the language contained in the will. When the founder and CEO of a Canadian cryptocurrency exchange, QuadrigaCX, died unexpectedly, nobody else had the password to the exchange’s cold storage locker. That cut off access to investors’ $190 million in cryptocurrency. Those investors may never see their funds again.…Read More
Medicare covers preventative care services, including an annual wellness visit. But confusing a wellness visit with a physical could be very expensive. As part of the Affordable Care Act, Medicare beneficiaries receive a free annual wellness visit. At this visit, your doctor, nurse practitioner or physician assistant will generally do the following: Ask you to fill out a health risk assessment questionnaire Update your medical history and current prescriptions Measure your height, weight, blood pressure and body mass index Provide personalized health advice Create a screening schedule for the next 5 to 10 years Screen for cognitive issues You do not have to pay a deductible for this visit. You may also receive other free preventative services, such as a flu shot. The confusion arises when a Medicare beneficiary requests an “annual physical”…Read More
The number of older Americans with student loan debt – either theirs or someone else’s — is growing. Sadly, learning how to deal with this debt is now a fact of life for many seniors heading into retirement. According to by the Consumer Financial Protection Bureau, the number of older borrowers increased by at least 20 percent between 2012 and 2017. Some of these borrowers were borrowing for themselves, but the majority was borrowing for others. The study found that 73 percent of student loan borrowers age 60 and older borrowed for a child’s or grandchild’s education. Before You Co-sign A Student Loan For A Child Or Grandchild, You Need To Understand Your Obligations The co-signer not only vouches for the loan recipient’s ability to pay back the loan, but is also personally…Read More
