Family, Wills and Estate Planning

Wednesday, November 2, 2011

Divorce agreement

By,Gekster

DIVORCE AGREEMENT THIS IS SO INCREDIBLY WELL PUT AND I CAN HARDLY BELIEVE IT'S BY A YOUNG PERSON, A STUDENT! WHATEVER HE RUNS FOR, I'LL VOTE FOR HIM.

Dear American liberals, leftists, social progressives, socialists, Marxists and Obama supporters, et al: We have stuck together since the late 1950′s for the sake of the kids, but the whole of the 2008 election process has made me realize that I want a divorce.

I know we tolerated each other for many years for the sake of future generations, but sadly, this relationship has clearly run its course. Our two ideological sides of America cannot and will not ever agree on what is right for us all, so let's just end it on friendly terms. We can smile and chalk it up to irreconcilable differences and go our own way.

Here is a model separation agreement:

Our two groups can equitably divide up the country by landmass each taking a similar portion. That will be the difficult part, but I am sure our two sides can come to a friendly agreement. After that, it should be relatively easy! Our respective representatives can effortlessly divide other assets since both sides have such distinct and disparate tastes.

We don't like redistributive taxes so you can keep them. You are welcome to the liberal judges and the ACLU.

Since you hate guns and war, we'll take our firearms, the cops, the NRA and the military.

We'll take the nasty, smelly oil industry and you can go with wind, solar and biodiesel. You can keep Oprah, Michael Moore and Rosie O'Donnell. You are, however, responsible for finding a bio-diesel vehicle big enough to move all three of them.

We'll keep capitalism, greedy corporations, pharmaceutical companies, Wal-Mart and Wall Street.

You can have your beloved lifelong welfare dwellers, food stamps users, homeless, homeboys, hippies, druggies and illegal aliens.

We'll keep the hot Alaskan hockey moms, greedy CEO's and rednecks.

We'll keep the Bibles and give you NBC and Hollywood .

You can make nice with Iran and Palestine and we'll retain the right to invade and hammer places that threaten us. –You can have the peaceniks and war protesters. When our allies or our way of life are under assault, we'll help provide them security. We'll keep our Judeo-Christian values. You are welcome to Islam, Scientology, Humanism, political correctness and Shirley McLaine.

You can also have the U.N. but we will no longer be paying the bill.

We'll keep the SUV's, pickup trucks and oversized luxury cars. You can take every Subaru station wagon you can find.

You can give everyone healthcare if you can find any practicing doctors. We'll continue to believe healthcare is a luxury and not a right.

We'll keep "The Battle Hymn of the Republic" and "The National Anthem."I'm sure you'll be happy to substitute "Imagine", "I'd Like to Teach the World to Sing", "Kum Ba Ya" or "We Are the World".

We'll practice trickle down economics and you can continue to give trickle up poverty your best shot.

Since it often so offends you, we'll keep our history, our name and our flag.

Would you agree to this? If so, please pass it along to other like-minded liberal and conservative patriots and if you do not agree, just hit delete.In the spirit of friendly parting, I'll bet you answer which one of us will need whose help in 15 years.

For additional information on these matters, please call 305 548 5020.

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Tuesday, November 1, 2011

Outdated will can lead to added legal issues

By,Terry McBride

EXECUTOR PREDECEASED
What if your appointed executor has died or become mentally incapacitated? Who would manage your estate? Your relatives might squabble for months until they can agree on who should apply to the court to administer your estate.
What if your executor is no longer a Canadian resident? Although faxes, couriers and emails make distance almost irrelevant these days, your non-resident executor may be asked to post an administration bond before the court would grant permission to manage your estate.

MARRIAGE
Your will is automatically revoked after you marry or remarry. Without a valid will your estate would be divided by strict formula among your next of kin. Each province sets out a different formula.
Any bequests to your own children or your favourite charity would be ignored once your will becomes invalid.
Did you know that in Saskatchewan, your will is automatically revoked after you have lived common-law with someone for two years?

JOINT OWNERSHIP
Have you registered ownership of real property or your bank account in joint names with someone with right of survivorship?
Have you named adult children as RRIF beneficiaries? You may have done so deliberately to reduce probate costs by arranging for the property to pass outside of your will.
However, joint ownership and beneficiary designations can too easily make will bequests obsolete.
When property bypasses your estate, any income-splitting testamentary trusts that you established through your will may never be funded.

INCREASED WEALTH
Has your net worth greatly increased because you received an inheritance or exercised some stock options? If you are lucky, you can stop worrying about outliving your retirement savings and start planning how to leave a legacy.
Your lawyer or financial adviser may ask if you want to leave any money to your favourite charity.

BIRTH IN THE FAMILY
The birth of your first child should motivate you to book an appointment with your lawyer to draw up a will. Appoint a guardian to look after your baby in case both parents die in a car accident, for example.
Then, you could also name a trustee to manage the money from your life insurance death benefit and selling your house.
Years later, the birth of your first grandchild could inspire you to revise your will to include trusts for a whole new generation.
You should also consider the possibility that your child could predecease you, leaving minor grandchildren to inherit.

BENEFICIARY DIED
If one of your children has predeceased you, would you inadvertently disinherit orphaned grandchildren if your will says that only surviving children can inherit?
What if you had bequeathed a special heirloom or the family cottage to a particular child who is now deceased?
How easily would the surviving heirs agree on how to divide your estate property?

BENEFICIARY'S MARITAL STATUS
What if there is a breakdown in the relationship between your child and partner? Will your child's inheritance be split when family property is divided?
It depends on the provincial statutes.
Call your lawyer to make an appointment to review your will.
Having an up-to-date will can make things easier, quicker and less expensive for your heirs.

For additional information on these matters, please call 305 548 5020.

Monday, October 31, 2011

Kraft Foods’ Divorce Prize a Miraculously Bad Idea

By,Chuck Donovan

A too-clever-by-half marketing team at Kraft Foods has come up with what they think is a hot seller: a contest offering a cash prize to the best YouTube video answering the question, "How has Miracle Whip Affected Your Relationship?" The winner of the contest, which runs until August 23, takes home (or to two homes, quite possibly) $25,000 to help pay for a wedding—or a divorce. Kraft officials have been stung by the criticism that has been justly leveled against the contest, which attempts to take a lighthearted and evenhanded stance of neutrality between marriage and divorce.

While divorce rates are thankfully not rising in the United States, divorce does extensive harm, some of which is masked by rising rates of cohabitation (with and without children present), where marriages do not occur in the first place. As data assembled by The Heritage Foundation at familyfacts.org shows, the U.S. divorce rate has declined from its peak in 1980 but remains high. Every year an estimated 1 million children undergo a family divorce, and evidence of the negative impacts on those children continues to accumulate. Can you picture beaming officials from the world's second-largest food company handing out a prize to a downcast family while the kids gaze at the camera and ponder their uncertain future?

With all 50 states having now adopted unilateral, or no-fault, divorce laws, it is tempting to think that the law has evolved once and for all, and no reconsideration is warranted. But states can and should consider ways to encourage couples to work to save a struggling marriage, especially in light of new research revealing how many divorced couples later wish they had done more to preserve their unions. Reform ideas along these lines are cropping up in state legislatures. They offer the prospects not only of benefit for the families directly involved but of real savings to taxpayers, who also pay a price in the aftermath of family breakups.

If Kraft Foods wants to demonstrate the good things its products can promote, why not offer $25,000 to a troubled couple to pay for counseling and support to keep their marriage together? Call it a "mayo clinic" for marriage preservation. If you agree, click here to let Kraft officials know there's a better way to use their formidable marketing resources.

For additional information on these matters, please call 305 548 5020.

Friday, October 28, 2011

Concern over legacy fundraising as will executor is 'bombarded by begging charities'

By,Kaye Wiggins

Charity worker complains to organisations that asked for donations from his mother-in-law's estate even though she had named beneficiaries

A charity worker has raised concerns about legacy fundraising after receiving 58 "begging letters" from charities when he became the executor of his mother-in-law's estate.

Marcus Watkins, head of finance and administration at Christian Medical Fellowship, said his mother-in-law's will specified that £20,000 should be left to charities named on a list that she had signed.

He said he and his sister-in-law were granted probate on the will in March 2011, and between May and July they had received letters from 58 charities – including several household names – asking them to consider leaving some of the estate to them.

"My mother-in-law made it clear in her will that she wanted her money to be given to those charities that she had named," he said.

"I feel bombarded by these begging charities, which seem to presume we will ignore her wishes. They have upset me and my family at a difficult time, and have alienated us to their cause."

Watkins has complained to the charities, some of which have changed their policies on legacy fundraising as a result. The international development charity Practical Action is one of those.

Mary Harwood, a legacy officer at the charity, said that as a result of Watkins' complaint it has stopped writing to individuals who are appointed as executors of wills to ask for donations.

"We were surprised to learn that Mr Watkins had received letters from so many charities, and we weren't aware of the list," she said. "We are very upset to have caused him such distress and, as a result, we have stopped this practice completely."

She said the practice had not been commonplace at the charity, and it had written to individual executors no more than 10 times a year for the past three or four years.

Watkins said some of the charities had been given his details by Smee & Ford, a firm that identifies bequests left to charity and notifies the charities concerned.

A spokeswoman for the company said it was unable to say how many charities it had given Watkins' details to. It had given the details out because the will included a provision that he would have some discretion over which charities received the £20,000.

"We provide a valuable service to charities," she said. "We believe it was appropriate to notify charities of this particular will because the trustee had some discretion over which charities were granted the money.

"We made it very clear to charities that they should be sensitive in their approach, because we do not want to cause distress."

For additional information on these matters, please call 305 548 5020.

Thursday, October 27, 2011

Delaying divorce to save marriages

By William J. Doherty and Leah Ward Sears, Published: October 20

Conventional wisdom holds that about half of U.S. marriages end in divorce — and that most Americans wish the divorce rate were lower. Still, many are skeptical about whether we can lower the divorce rate without trapping more people in bad marriages.

This skepticism is fueled by two common assumptions: Divorce happens only after a long process of misery and conflict; and, once couples file for divorce, they don't entertain the idea of reconciling.

We now know those assumptions are wrong.Research over the past decade has shown that a major share of divorces (50 to 66 percent, depending on the study) occur between couples who had average happiness and low levels of conflict in the years before the divorce.

Contrary to popular belief, only a minority of divorcing couples experience high conflict and abuse during their marriages. Most divorces occur with couples who have drifted apart and handle everyday disagreements poorly. It is these "average" divorces that research shows are the most harmful to children.

In their study documenting the difference between high conflict and average divorces, sociologists Paul Amato and Alan Booth offer this promising conclusion: "Our results suggest that divorces with the greatest potential to harm children occur in marriages that have the greatest potential for reconciliation."

But do any parents already in the divorce process still want to save their marriages?

William J. Doherty and his team of researchers asked 2,500 divorcing parents in Minnesota who were well along in that process whether they were interested in services to help them reconcile. In at least 10 percent of these divorce cases, both spouses were open to efforts to reconcile — and in another 30 percent, one spouse was interested in reconciliation. Results for couples earlier in the divorce process were even more promising.

In other words, a substantial number of today's divorces may be preventable.

Why does this matter?

As a longtime jurist, Leah Ward Sears held a front-row seat in witnessing how family fragmentation affects children. She saw the overwhelming anger, depression and grief that plague children when their parents are splitting up. Her concerns grew as she also noticed links between divorce and poverty, divorce and juvenile delinquency, divorce and mental health illnesses, and even divorce and violent crimes. Even a modest reduction in divorce could benefit more than 400,000 U.S. children each year.

Can we as a society do anything to support the marital union of these children's parents, especially those interested in saving their marriages?

We propose a modest reform that U.S. state legislatures can enact: the Second Chances Act, which combines a minimum, one-year waiting period for divorce with education about the option of reconciliation.

With regard to waiting periods, there is considerable variation among states. Forty-six states have waiting periods of six months or less, including 10 states that have no waiting periods. No other Western nation has waiting periods as short as the United States. In Western Europe, three-year waiting periods are common.

A one-year waiting period would ensure that the law is not moving couples — who are often at one of the most intense emotional periods of their lives — more rapidly toward divorce than perhaps they intended or wanted.

Our proposal, which we plan to roll out to a few states and then pursue nationally, would also require parents of minor children considering divorce to take a short, pre-filing parenting education course. This education component, which could be completed online, would include information on reconciliation (along with resources for couples who choose to pursue that course) and information on a non-adversarial approach to divorce. Forty-six states already require some form of parenting classes for divorcing couples with minor children, although most couples take the classes well into the divorce process. Tragically, educators who teach these classes report that some parents say such things as "I wish I had known these things when we first broke up."

Empowering couples with this education before they divorce, combined with information about the option of reconciliation, is a win-win situation: It gives individuals a second chance for their marriages, and it gives everyone — regardless of whether they pursue reconciliation — a chance for a less adversarial divorce process.

We are under no illusion that the Second Chances Act is a panacea for lowering divorce rates. And we are certainly not advocating keeping destructive marriages together. (Under our proposal, the waiting period can be waived if there is abuse.) But we now know that a significant number of divorces may be preventable. This modest reform could spare many couples and children the pain of an unnecessary divorce.

For more information on these matters, please call our office at 305 548 5020.

Wednesday, October 26, 2011

End-of-Life Decisons: Family Consent Law Proposed by Jacob Fenston

End-of-life decisions can be wrenching for families. In the early 2000s, the case of Terri Schiavo riveted the nation, as her family battled over whether to remove her feeding tube or keep her on life support. Now, 44 states have so-called "family consent laws," which help determine which family member should make health care decisions. Missouri is one of six states with no such law, putting families and doctors in legal limbo. But, as KBIA's Jacob Fenston reports, a bill headed for the Missouri legislature could change that.

Charley Shurtz knows how hard it can be to make a health care decision for another human.

"Many years ago, my mother was at work she had a job and she helped raise seven kids and she passed out at work," says Shurtz.

She had lung cancer, and fluid was building up in her lungs and around her heart. It fell to Shurtz and his siblings to decide whether to go ahead with a procedure that could extend her life. They said yes.

"But when she come off the ventilator, she said, if I had my choice, I would have never been on that. Don't you guys ever do that to me again,'" Shurtz says.

Now, technically, that decision was in a sort of gray legal area - at least in Missouri.

"Most people think that, you know, their spouse, their children, their parent, can deal with their health care issues, give consent," says State Representative Bill White, Republican from Joplin.

"But there's no legal basis in Missouri for anyone other than the patient themselves giving consent to authorize any medical care."

That is, unless the patient has previously created an advance directive - but only about one third of Americans has done so.

Earlier this year, White introduced a bill to address the issue by establishing a default order of family members who could step in to make health care decisions, for patients without an advance directive.

But not everyone thinks that's a great idea.

"I mean, the fact is, we live in a world of dysfunctional families," says Daniel Baker, a lawyer with the Missouri Catholic Conference, a group opposing the bill.

"I would reckon, a good number of people would look at their immediate family members and say, uh, well, maybe he or she does not have my best interests at heart,'" says Baker.

But White says under his bill, disagreeing family members could take their case to court - just as they can now under current law.

But what about family members who aren't even listed - who are not legally recognized?

"In reviewing the list, what was blatantly missing was the domestic partner, or the significant others, same-sex partners," says Joanne Schleiker, a social worker at a hospital in St. Louis.

Schleiker says she's seen many a case where a same-sex partner was excluded by family members.

"When if that patient were awake and able to say, they would want their partners to make those decisions for them, says Schleiker.

White says the problem is defining these relationships that are not recognized by the state of Missouri.

"Does your significant other for a week count, or does it have to be two years, or five years?"

White plans to re-introduce a new version of the bill at the beginning of the next legislative session in January.

For more information on these matters, please call our office at 305 548 5020.

Tuesday, October 25, 2011

DIY or Not: Wills and Estate Planning

by Gabrielle Karol

When it comes to the people you love, you'd do almost anything to ensure they're taken care of.

Even fill out forms.

And if you have loved ones, there are a few crucial financial forms you will need to fill out to protect those you care about.

Luckily, you don't always need to see an attorney—or pay expensive fees. Some forms are so simple you can download them and fill them out yourself within minutes, at no cost.

Then again, some forms—and some family situations—are complicated enough that you definitely should enlist professional help. We spoke to Yana Feldman, an estate planning attorney based in Garden City, New York, who told us when to DIY and when to call an attorney.

One thing she did tell us definitively: Never entrust your estate planning to online services like LegalZoom. These services still cost money … and don't provide the eagle eye of an attorney to ensure you cross every last T just so.

Here's when Feldman says you should call a lawyer like her—and when you can easily DIY for free:

Don't Call Me If …

You're looking for a living will.

And you should be. Regardless of age and health, every adult in the U.S. should fill out a living will, health care proxy and HIPAA authorization. A living will specifies the medical treatment you want, in case you can't voice it yourself. This would prevent an expensive and heartrending experience for your family (think Terry Schiavo). Also, designate someone you trust as a health care proxy who can carry out your medical wishes, and sign a HIPAA authorization form, which would provide her with access to your medical records in case of emergency.

How to DIY:

Learn the regulations for living wills and proxies for your state here.
Search online for your state's living will and proxy forms (search "[your state] + living will form").
Fill out the forms and have them signed by the proxy you've chosen as well as any witnesses your state requires.

You need to assign beneficiaries to all of your assets.

Beneficiaries are the loved ones you'd want to have your money if—heaven forbid—something happened to you. Naming beneficiaries takes only a few minutes for assets like life insurance, checking, savings or brokerage accounts. So, you don't need a lawyer to draw up a will if all your assets already have assigned beneficiaries, or if you can easily decide who you want to receive what. (If you can't decide how to easily split up your assets, keep reading.)

How to DIY:

Figure out which of your assets do and don't have beneficiaries already.
Call your bank and ask what forms you need to assign beneficiaries. These can include 401(k)s, IRAs, life insurance policies, investment accounts, checking and savings accounts.
Decide who you want to inherit each asset. If you're married, we recommend naming your spouse. If you're unmarried, consider your adult siblings or your parents.
Fill out the forms (all you need is the beneficiary's name, date of birth, contact info and possibly Social Security number). Mail or fax the forms back to your bank.

For more information on choosing beneficiaries, read this.

You have children and are not planning to draw up a will.

If you have children, you'll want to make sure they're protected in case you or your partner can't care for them by naming a guardian. If you don't take care of this, you run the risk of the court choosing someone who's not your ideal choice. (That third-cousin-twice-removed whom you haven't spoken to in a decade?) If you name someone, the court will still need to vet your choice, but the judge will most likely appoint the person you selected. If you are going to draw up a will (see "Call Me If …"), your lawyer will include guardianship in your will. If you are not planning to create a will, you can fill out guardianship forms yourself.

How to DIY:

Decide who would best serve as guardian for your children. Think about whether that person should also be responsible for overseeing the money you leave to your children. (Read this for more on what to think about when looking for a guardian for your children and your finances.)
Once you raise the question of guardianship with the person you've selected, go to your local family or surrogate's court to pick up guardianship forms.
Fill out and submit the forms. You will need the signature of both parents and the name of the person you've appointed guardian.

Maybe Call Me If …

You're not leaving a very big inheritance.

If you'll be leaving behind relatively little in property and assets and don't want special provisions (i.e. everything can go to your spouse and children; you don't need to specify that your piano goes to your third-cousin-once-removed), your family may be able to bypass expensive legal proceedings after you're gone.

How to DIY:

Find out if your estate qualifies as a "small estate" here. If not, read the "Call Me If…" section below.
If your estate qualifies, think about whether there's likely to be arguing among your potential heirs (spouse, kids, siblings, etc.) after your death. If so, go down to the "Call Me If …" section below.
If your estate qualifies and you feel confident that your heirs can handle themselves peaceably, you're good to go: Your family can go to their local probate court, fill out a small estate form in the month after your death, submit it to the court and distribute your assets without expensive legal fees or long court proceedings. It differs from state to state, but as a general rule, they will need your death certificate, a family tree, copies of bank statements listing assets and copies of any bills or outstanding debts.
Discuss this with adults in your family now, so they'll know what to do in that event.

Your relationship status has (or is about to) change.

If you and your fiancé have a significant income disparity—or one of you expects to inherit a lot of money—consider seeing an attorney for a prenup. (You can also get a postnup if you are recently married.) Although this may sound "unromantic," a formal agreement means that you can have a blissful marriage without worrying what would happen financially if ever you got divorced. Learn more about prenups here. Meanwhile, if you're recently divorced and had a will drawn while you were married, review it again. If you want to change any terms now that you're no longer married, call your attorney to make revisions.

You can DIY a cohabitation agreement, however, if you're getting ready to move in with someone who's not your spouse. How to DIY:

Discuss what would happen if you broke up: How would the moving out process and shared possessions shake out?
For more ideas about topics to address in a cohabitation agreement, read LearnVest's CFP Lauren Lyons-Cole's story here.
If your relationship does come to an end, follow the cohabitation agreement as closely as possible to ensure that the moving out process is as painless and easy as can be.

Call Me If …

You haven't assigned "power of attorney" to someone you trust.

Everyone should have this important document on hand. If an illness or accident leaves you unable to take care of your finances, you'll want someone you trust to manage your money: pay your rent or mortgage, your credit card bills and—importantly—your medical fees. See a lawyer to draw up a "power of attorney" document. While this form is available online, the standard form does not grant a few specific powers that could be very important if your designated person actually did need to use power of attorney, such as accessing a safe deposit box or setting up a trust. Seeing an attorney for this can cost between $150 and $500, but if you were incapacitated and didn't grant someone power of attorney, the legal proceedings would be much costlier ($5,000 and up).

Your heirs are likely to fight among themselves.

People squabble about money, even small amounts of it. If you think your heirs will fight it out among themselves after your death, see an attorney to draw up a simple will, in which you will name an executor. A lawyer will be better able to understand how the money you leave will affect your heirs and how to arrange your estate to prevent any squabbling. The lawyer will also be able to help you choose the best executor, who should be the person who is most able to divide up your assets and manage the inheritance without causing rancor among your heirs. If you don't draw up a will and your family wages a battle over your estate, the legal proceeding will be longer, more painful and probably costlier than anyone would like.

You can't decide how to divide your assets or want to make special provisions.

If you have very specific wishes about how your estate will be handled after your death, see an attorney to draw up a will. For example, say you wanted to split your assets evenly between your three children, but one of them has a history of financial issues and can't be trusted with money. With a will, you could assign a trustee to manage the money for him, so he doesn't squander it. Similarly, if you want to specify individual possessions (your grandmother's china should be passed on to your niece, your paintings should go to your second son, etc.), you should see an attorney to draw up a will.

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You're leaving an inheritance for a child with special needs.

If your child needs to be taken care of after you've passed away—and you plan to leave an inheritance—see an attorney who specializes in special needs. For example, leaving behind as large a sum as possible may seem like a good idea, but if your child depends on Medicaid or other government programs, getting an inheritance could actually disqualify him. Even if all you have is a life insurance policy, you should see an attorney to set up a special needs trust, which is too complicated to DIY. This will help you to provide for your child in the best way possible, even after you're gone.

You have a sick or elderly parent who doesn't qualify for Medicaid.

Medicaid is a government program that provides benefits to the elderly and sick, including at-home care. But without this help, these costs can be very expensive. If you have an elderly parent who doesn't qualify for Medicaid because of her income or assets (research Medicaid laws by state here), speak to an attorney who specializes in elder law. An attorney may be able to arrange your parent's finances to help her qualify for Medicaid, easing emotional and financial stress for both you and your parent.

You qualify for the estate tax.

The estate tax is levied on really large estates after a person's death. Since 1977, less than 2% of the population each year has left estates large enough to be taxed; the federal estate tax currently applies to estates worth $5,000,000 or more. Read this to find out if your state currently has an estate tax. If you'll be subject to state or federal estate taxes, speak to an attorney to organize your assets and ensure that your family and friends—rather than the government—inherit as much as possible.

For more information on these matters, please call our office at 305 548 5020.

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