May 2012 - Letters of Instruction in Estate Planning
Too often, clients feel shoehorned into antiseptic legal jargon in their will or trust. As a lawyer, I use court-sanctioned terms like ‘maintenance and education’ because I want the Trust to be legally ironclad. I imagine my client might prefer to see ‘college room and board.’ In fact the client may well mean something specific along the lines of:
‘college at a state school for no more than four years unless there is a really good reason and maybe graduate school but only if the degree will make money and also high school tuition if needed but not a boarding school unless, I guess, that is also really needed…’
As your lawyer, I will stick to the accepted legalese, but your intent is extremely important. You can explain your intent to your Trustee by writing them a personal document called a ‘Letter of Instruction.’
April 2012 - JGB Estate/Trust Administration 101
We routinely are asked the question by clients and potential clients, “When I die, is this estate plan implemented automatically?” The universal answer is a resounding ‘No’. The existence of a Will or Trust document does not, by itself, make anything happen automatically. The estate plan provides the framework within which the action is implemented to accomplish your predetermined goals and objectives. In simpler terms, your estate plan provides your marching orders which must be carried out by your designated fiduciary.
March 2012 - Estate Planning for Unmarried Couples
In my experience working with clients over the years, it seems that people generally fall into two categories; they do not have a formalized estate plan, or their current plan is woefully inadequate. This is especially true with unmarried couples. For the context of this discussion, the term "unmarried couples" is intended to include both unmarried heterosexual and homosexual couples.
February 2012 - Exciting News!
Dear Friends:
This has been a busy month for the law firm of Johnson, Gasink & Baxter, LLP (JGB). We are very proud to make two announcements: We have acquired the law practice of a dear friend and colleague and have been honored and humbled to be again recognized by ‘Super Lawyers’ magazine.
January 2012 - "Isn't This All Just Boilerplate?"
“Isn’t this all just boilerplate?” the man sitting across the table said, clearly with a sour look on his face and a negative inflection in his voice. As I quickly quelled my knee-jerk reaction to berate him with a self-important diatribe; I calmly explained the error of his reasoning that led him to such a statement.
December 2011-What Does a Transfer On Death (TOD) Designation Really Solve?
Although staggering in number, around 45% of U.S. adults have never taken the time to memorialize their wishes in a Last Will and Testament. Many people feel that their personal circumstances do not meet the level of complexity, nor does their wealth meet sufficient levels to warrant "formal" Estate Planning. Albeit often incorrect, the belief that complexity and/or wealth are necessary for "formal" Estate Planning continues to plague families dealing with the death and incapacity of their loved ones. Although many people do not have formal Wills, many rely on Transfer on Death (TOD) designations and Payable-on-Death (POD) designations, sometimes without fully understanding the intricacies and consequences.
November 2011 - Why You Should Have a Living Trust
Should you look into a Living Trust Plan? Trusts have become increasingly common and have many benefits. They function as a sort of will substitute and can save your heirs substantial time and money. To help you understand wills and Trusts, this article begins with an analysis of the pros and cons of a will and then compares a will to a Living Trust
October 2011 - NFA Trusts
The climate against privately owned firearms can often be described as politically hostile at the local, state and federal levels, especially when dealing with items covered by the National Firearm Act (“NFA”). It is illegal for any person to possess an NFA item that is not registered to that person in the NFA Registry. It is also illegal to transfer an NFA item without complying with several NFA transfer rules. An NFA trust is a legal instrument which can be used to acquire, control, regulate and transfer the private use of NFA (Class 3) items, weapons, suppressors and other destructive devices.
September 2011 - Do I Need to Fund My Revocable Living Trust?
Every Revocable Living Trust Estate Plan needs periodic review and upkeep to maintain its relevance regarding family, resources, as well as changes in the law. The 'funding' of the trust is equally important to review, to be certain that assets are coordinated with the goals and objectives of the estate plan.
August 2011 - Veterans Aid and Attendance Benefits
‘Aid and Attendance’ benefits (A&A) provide funds to help veterans pay for in-home care. Unlike standard pensions offered to military retirees, this little-known program offers financial assistance to any qualified veteran.
July 2011 - What You Need to Know About Incapacity, Death and Trusts
We routinely get the question, “What should my spouse or children do with regards to my trust if I become incapacitated or die?” Every family situation and trust instrument is unique. As such, the specific details of the answer to this question can vary greatly. However, there are common threads that run through most families and trust instruments to which almost everyone can relate. The purpose of this article is not to describe in detail all the aspects of trust administration at incapacity or death; but rather, to provide you with a basic framework so that you can quickly achieve a sense of comfort and ownership of the trust administration process.
June 2011 - Keeping the Family Inheritance in the Family
Our children must face many challenges throughout their lives, and they will invariably make mistakes along the way. Every parent wants to shelter and protect their children as much as possible, but without a properly designed estate plan, parents can add more problems to their children's lives. A fairly common mistake among parents is to leave assets outright to their children (through not having an estate plan or having a poorly drafted plan).
May 2011 - Three Things You Need to Know About Wills
We know we need to get our affairs in order. At a minimum, we need to tell our families who is to take control of our financial and medical affairs at our incapacity or death. This month’s newsletter focuses on three basic things everyone needs to know about their will.
April 2011 - The Brady Bunch Effect: Planning for Blended Families
As a society, we have come to expect that one out of two marriages will end in divorce; and 60% or more of second marriages will fail. According to the U.S. Census Bureau, 66% or more of the marriages and non-marital cohabitation relationships that end in dissolution, involve children in the relationship. It is predicted that 50% of the children in our country will experience a divorce before they are 18. Approximately half of all Americans are currently involved in some form of step-relationship. It is now estimated that more Americans are living in step families than in nuclear families. Regardless of the method of analysis, it is apparent that blended families are now the new “norm.”
March 2011-Planning Successful Business Succession with Buy/Sell Agreements
It is an all too common mistake for new business owners (and even long-time business owners) to focus their energy exclusively on day-to-day operations and fail to implement the right business planning. One occurrence that emphasizes the importance of having the right business plan in place is the death of a business partner. In most situations, decedents leave their business interest to their spouse or children. This can be a problem for the other partners because they are forced into business with the spouse and/or children of their deceased partner. The solution to this sticky situation is a properly drafted Buy-Sell Agreement created before the death of a partner. The Buy-Sell Agreement can lay out the precedence of business interest succession; whether it be to existing shareholders, the business itself, or even family members of the deceased shareholder.