On behalf of Faupel, Fraser & Fessler, Attorneys at Law posted in Estate Administration & Probate on Tuesday, May 15, 2012
The Internet has brought about new digital assets that can be left behind for future generations in Michigan and elsewhere. Digital assets include everything from email accounts to personal blogs or social media pages.
As such websites become a bigger part in our lives, they chronicle an increasingly greater volume of our thoughts and communications. What we leave in an email account can be quite personal and potentially embarrassing. The pure volume of private personal information that digital assets hold necessitates considering those assets as an aspect of estate planning.
On behalf of Faupel, Fraser & Fessler, Attorneys at Law posted in Trusts on Thursday, May 10, 2012
There are over 100 million homeowners in the United States, and it is important to create a plan for how to pass that property on to heirs and beneficiaries. Depending on a person's needs and circumstances, a trust can be the vehicle to achieve that goal. When used as part of an estate plan, trusts can prevent real property from going through the probate process and can in some situations provide beneficial tax outcomes.
Trusts come in a variety of forms and there are many ways to categorize them. One way is by dividing them into revocable and irrevocable trusts. A revocable trust is one that can be changed by the trust's creator--called the settlor--without the permission of the beneficiaries. They are typically more flexible than irrevocable trusts and allow settlors to control ownership of their assets until death.
On behalf of Faupel, Fraser & Fessler, Attorneys at Law posted in Estate Administration & Probate on Wednesday, May 2, 2012
It is easy to think of an estate plan as two points in time: the moment when a person creates the plan and the time when it takes effect, that is, at the person's death. But as other posts on this blog have emphasized, estate planning is a dynamic process that requires attention over time, and in few areas is that more true than in a person's gift-giving strategy.
Rather than leaving the entirety of one's estate to beneficiaries in a will, gifting gradually parcels out pieces of the estate over time to those beneficiaries. Gifts do not eliminate the need for a will, however. A person needs property and assets to live, so there will naturally be some property remaining when a person passes away that can be distributed through a will. Instead, gifts made during one's lifetime--also called inter vivos gifts--and wills can work together as part of a broader estate plan.
On behalf of Faupel, Fraser & Fessler, Attorneys at Law posted in Wills on Friday, April 27, 2012
Michigan residents of today have a much greater quantity of information at their fingertips than ever before. But has the quality also improved? It is an observed trend that some people are turning to the Internet and estate planning books to draft their wills and other legal documents. But some caution against this approach, arguing that in trying to meet everyone's needs, these general sources of information may miss the details needed for effective individual estate planning.
A thorough estate plan must take into account a person's specific desires for transferring property. To do this, it is necessary to probe an extensive number of variations on potential future events. This may start by asking: Who should get a given piece of property? What if that person dies before the property owner? These questions continue with increasing complexity. A do-it-yourself plan may leave some of these options unexplored, however.
On behalf of Faupel, Fraser & Fessler, Attorneys at Law posted in Estate Administration & Probate on Thursday, April 19, 2012
Across the waters of Lake Michigan, the third and last winner of the record-setting Mega Millions jackpot came forward this week to claim their share of the prize. The winning ticket belonged to a married couple in their 60s. Their measured circumspection after receiving a nine-figure payout can serve as a lesson in estate planning to anyone, whether their wealth is large or small.
While some people may have reacted frantically to winning the lottery, the couple's response was noticeably muted and reserved. After checking the ticket against the correct numbers announced on the news, the husband told his wife simply, "We won." Then they calmly and logically secured the ticket in a safe deposit box at their bank.
On behalf of Faupel, Fraser & Fessler, Attorneys at Law posted in Wills on Friday, April 13, 2012
Estate plans are designed to address a variety of potential outcomes, both the ones we hope will occur and those we want to avoid. Over time, however, a person's situation changes, and certain outcomes become more likely while others become moot. Wills, trusts and other estate planning documents are flexible, but do need occasional amendment as the circumstances dictate.
People may have to revise their wills as intended beneficiaries grow, marry or pass away. Changes in these relationships can distort a person's plan for the distribution of property. For example, a person's earlier will may have been designed to provide almost exclusively for a spouse and children. But if those children are now self-sustaining adults, the testator may want to alter the distribution plan.
On behalf of Faupel, Fraser & Fessler, Attorneys at Law posted in Wills on Monday, April 2, 2012
Many states are seeking to increase revenues in these tough financial times, and Michigan is no exception. While there are many ways for a state to add funds to its coffers, since last year Michigan has gathered some money through a provision called the Estate Recovery Law. That law permits the state to place a lien on the estate of a deceased person who benefitted from Medicaid.
The law's effect is to place the state before family, friends and loved ones who stand to inherit from the person's estate. In some cases, the law can contravene the explicit language of a person's will. In one family's case, the law could force the sale of a household that has been in the family for over 60 years.
On behalf of Faupel, Fraser & Fessler, Attorneys at Law posted in Power of Attorney on Monday, March 26, 2012
Some Michigan residents may currently care for an elderly parent or know a friend who does. Such arrangements can bring up a host of issues, among them the legal questions of how we want to be taken care of in old age and whom we want making decisions on our behalf if we become unable to do so. The law provides documents to answer both questions, and the documents should be part of a complete estate plan.
A durable power of attorney answers the question of whom we want making decisions on our behalf. In that document, a person gives power to another who will govern that person's financial affairs in the event that the person is incapacitated through illness or injury. Some seniors are the target of financial scams, and a power of attorney can help protect those who are vulnerable.
On behalf of Faupel, Fraser & Fessler, Attorneys at Law posted in Guardianships & Conservatorships on Thursday, March 22, 2012
Thorough Michigan estate plans assure people that their assets and affairs will be taken care of in accordance with their wishes when they pass away. But what happens when people suffer accidents and illnesses that render them unable to manage their affairs while they are alive? The answer can be a conservatorship, which is what the daughter of Zsa Zsa Gabor is seeking for her mother.
Gabor has been in declining health for the past couple of years and had one of her legs removed in 2011 because of an infection. She is now bed-ridden and under a heavy dose of sedatives, according to her daughter. Gabor's daughter is concerned that the former movie star's current husband is mismanaging her medicines and financial affairs. Her daughter therefore petitioned a local court to appoint someone to oversee Gabor's money and medical treatment.
On behalf of Faupel, Fraser & Fessler, Attorneys at Law posted in Wills on Monday, March 12, 2012
A person's property often includes more than a house, a car, bank accounts and retirement investments. Many Michigan residents pursue collecting as a hobby, and we collect things as diverse as cars and porcelain figurines. For most, creating a collection is a pursuit born of interest in the objects' time period, manufacturer or historical significance. But some collections, especially if they are thorough or contain a rare object, can be worth a great sum of money.
The question arises: How should one treat a collection in a person's will? Hobbyists can run into problems when deciding how to pass on their collections. First, they may want to keep the collection in the family for generations. But children and relatives often do not share the collector's enthusiasm for the objects and may sell them as soon as they receive them. Second, they may not know the value of the collection, which can complicate tax matters when it comes to giving the collection away.
