David Otis Edwards, Edwards Group, LLC

12 Wealth Threats - check out the table of contents

noreply@blogger.com (David Otis Edwards) — Tue, 16 Feb 2010 21:51:00 +0000

Click here to see a pdf of the table of contents of my new report. 12 Wealth Threats You Must Know about and How to Avoid them.

The table of contents outlines the various topics, all focused on protecting your family's wealth.

12 Wealth Threats - new free report released

noreply@blogger.com (David Otis Edwards) — Tue, 16 Feb 2010 21:38:00 +0000

This week we released the new report I drafted. This report outlines 12 threats to a family's wealth and steps you can take to avoid them. Download the free report by clicking below:

12 Wealth Threats You Must Know About and How to Avoid Them

By David Otis Edwards, Estate Planning and Asset Protection Attorney

rare video footage of an attorney and his Panaboard in their natural habitat

noreply@blogger.com (David Otis Edwards) — Sat, 31 Oct 2009 20:42:00 +0000

The ways of lawyers are largely unknown and mysterious - like the wily Sasquatch they are rarely caught by a camera in their natural habitat. And like the Sasquatch, any attempt to film them can sometimes be met with violent outbursts or at least strong procedural objections.

But, at great risk to life and limb, we have been able to obtain this rare footage of an attorney using an electronic white board, called a Panaboard, to illustrate a client's estate plan. This video was first shown publicly at a presentation at the Sangamon Valley Estate Planning Council on Oct. 29, 2009.

$54 million pants: youtube video interview of owners

noreply@blogger.com (David Otis Edwards) — Wed, 21 Oct 2009 13:40:00 +0000

Here is a video related to my last post - the $54 million lawsuit against a family owned dry cleaning business, that resulted in them closing their store because of the legal expenses and stress of the 2+ years in court.

Check out the video.

Asset Protection: case of the $54 million pair of pants

noreply@blogger.com (David Otis Edwards) — Tue, 20 Oct 2009 20:30:00 +0000

"After 2 years in court, I realized we could lose everything we had worked for...I felt heartbroken and overwhelmed."

You're heard me talking about asset protection - how you should set up your estate to protect your spouse and children from threats to their inheritance from lawsuits, creditors, divorce, remarriage, etc. Maybe you've thought to yourself that your spouse or kids don't need that because they are good drivers, make wise decisions, aren't in a risky profession or business, would never marry a gold digger, etc. Well, that may protect them from some risks, but not all.

A man took his pants to a D.C. drycleaner. He came to pick them up and supposedly they misplaced them. So he sued the dry cleaner for damages of $54 million for the lost pants. How did he come up with $54 million? That's $18,000 for each day that the store allegedly committed consumer fraud by having a sign on the wall saying "Satisfaction Guaranteed".

The court found in favor of the dry cleaner. No surprise there. Then the customer appealed to get the ruling overturned. Guess what? The appellate court also agreed that the case was ridiculous and tossed it out. So everything is fine, right? Well, all that took over 2 years.

"Even though we were victorious, I knew no one had won this battle"

The owners of the dry cleaner, Korean immigrants Soo and Jin Chung, had to sell the business, citing the legal expenses (well over $100,000) as well as the stress of becoming part of a case that was a media sensation.

What is the moral of this story (from an estate planning perspective)?

Threats include not just legitimate threats (such as a car accident that was your spouse's fault), but also bogus threats that cost money to defend.
You can't insure against all possible threats. $54 million is beyond any small business's insurance policy.
Outside threats to assets are outside of our control. What are the odds a dry cleaner will lose a pair of pants? Probably 100% of dry cleaners have lost something at some point. What are the odds of getting sued for $54 million? Pretty slim, but all it takes is one loony customer who decides to take you to court. And all it takes is one nut job to threaten the hard earned money you leave to your wife or child.

Come hear more about threats to your family's wealth and how you can protect against them with some effective planning. RSVP today to attend our Truth about Estate Planning Workshop. CLICK HERE FOR ONLINE INFO AND SIGN UP FOR WORKSHOP

David Otis Edwards
Counselor at Law
Helping families protect what is most important to them

Truth about Estate Planning Workshop

noreply@blogger.com (David Otis Edwards) — Wed, 23 Sep 2009 01:48:00 +0000

Starting in October., our Truth about Estate Planning Workshop is the best first step for anyone who wants to explore planning options. Learn about the pitfalls to a successful plan and understand whether you need to give more attention to your planning. Anyone who already has a will or trust (that may need updating) as well as someone with no plan at all will find this workshop to be just the thing to get them started thinking about options. This workshop is done informally, with a maximum of 12 people per session, and leaves plenty of time for questions.

Thursday, Oct. 1
1:30 to 3 pm

Tuesday, Oct. 6
4:30 to 6 pm

Monday, Oct. 12
9 to 10:30 am

Friday, Oct. 30
1:30 to 3 pm

Thursday, Nov. 5
9 to 10:30 am

Tuesday, Nov. 10
4:30 to 6 pm

Thursday, Nov. 19
1:30 to 3 pm

All workshops are held in the Community Room at Edwards Group LLC, 4340 Acer Grove, Springfield, Illinois. RSVP required. Space limited. Contact Lynn Hanson, Client Coordinator at 217-726-9200 or lynn@edwardsgroupllc.com.

Example of topics covered: how to protect your family's wealth from threats of probate expenses, taxes, nursing home costs, lawsuits, divorces; how to protect your independence as you face aging and disability; common mistakes made in leaving an inheritance; why your will or living trust may not do what you think it does.

families face aging parents - trends and struggles

noreply@blogger.com (David Otis Edwards) — Wed, 09 Sep 2009 03:13:00 +0000

Aging Trends and Obstacles of Legacy and Control

There are some things going on in our society now that makes aging, and the way families deal with it, different than it used to be. These issues below are things I see my clients facing as we discuss planning for aging and disability.

1. Better healthcare and longer life expectancy. That's a good thing, right? Yes, but it leads to some challenges. If you live longer, your health issues may cause you to run out of money, your declining health may dramatically reduce your quality of life, or there's even a chance your children may face declining health or even pass away before you do.

2. Earlier retirement. People are living longer, but retiring earlier. In 1910, the average retirement age was 74 years, meaning people often worked until they passed away or had to quit for health reasons. In 2002, the average retirement age was 62. Isn't it nice to retire early? Yes, but it also leads to more planning pitfalls, i.e. more years to potentially get bored, lonely, or run out of money

3. Families are more scattered. I know some people who have several households within the same family living on the same street. This is rare. More common is that parents have children scattered around different cities, different states, or even different ends of the country. When the family is so spread out, what does that mean for the parents as they age and need assistance? The magazine Christianity Today recently had a column ("Honor Thy Father" for Grownups) about honoring your parents by taking care of them in their old age. How does a family do that when there are 1000's of miles in between? Often it means delegating the day to day assistance to professional care givers or medical personnel.

4. Communication between generations. David Solie's book "How to Say it to Seniors: Closing the Communication Gap with our Elders" discusses the two main tasks facing older adults: how to maintain control and how to leave a legacy. Those issues can lead to both conflict as well as rewarding and meaningful conversations.

Let's think about control

As a person ages, they are faced with losing control. Loss of health, friends, social status, ability to work, driving, choosing where they live, control of money. All these evaporate as the years tick by. As they are already facing these things slipping away, along comes one of their kids. And what is he telling them? stop driving, move to assisted living, go to the doctor, eat better, etc.

Is it any wonder that the older generation balks at the advice sometimes? Even if the advice is logical and right on target, it is still another threat to their independence and control. The control is already slipping away naturally and then comes a child wanting to (seemingly) speed up that loss. When a child pushes their elderly parent to make the "right" decision about some life circumstance, it can lead to frustration on both sides, with both feeling unappreciated.

Some people learn from experience that trying to convince our elders with logical arguments will get no where when the elder sees it as a threat to their independence and control. The author, David Solie, says we should stop fighting for control and instead be there to assist. When an older person is allowed the room to make a decision they will often come to a conclusion much more quickly than if they were pushed.

Those in the younger generation are constantly pushing forward to the next new thing. Older adults are sometimes faced with hanging on tight to avoid losing what they already have. Remembering each generation's different perspective will hopefully reduce the frustration and conflict in those already difficult conversations.

Leaving a legacy

Unfortunately, some seniors spend so much energy and effort trying to maintain control that they never get to the second task of aging - reviewing their legacy. Leaving a legacy involves reflecting on life and how we will be (or want to be) remembered. Reflection means slowing down and focusing on past details. True reflection means a lack of urgency about current tasks.

This lack of urgency is another obstacle to a child pushing a parent to make decision about a new living arrangement or some other decision that "must be made right now".
For all us overly busy people measuring our worth on errands done, emails sent, and whether we are caught up on our facebook status, it may be hard to relax and drop our task orientation.

However, when you hear an older person repeating a story or going into exhaustive detail, listen! You might see how the values in the story reflect the legacy that the storyteller wants to leave and how they would like to be remembered.

parents - download report, get free movies, pizza, ice cream

noreply@blogger.com (David Otis Edwards) — Fri, 04 Sep 2009 14:31:00 +0000

Who wouldn't want to win free movies, pizza, and ice cream?

If you don't want that, you probably need to have your head examined.

Enter my September drawing for free stuff just by downloading a copy of my free report on how to protect your most precious asset - your kids. Do it right now before you forget.

Go to www.11ThingsParentsShouldKnow.com and download my free report:

Naming a Guardian for your Kids: 11 Easy-To-Understand Facts Every Parent Should Know

Anyone who downloads my report during September will be entered in a free drawing for a Family Fun night of pizza, movies, and ice cream, worth $80.

Pizza $30 gift card from Coz's Pizza, 4441 Ash Grove Dr. (and only a 30 second drive from Edwards Group LLC!)

Movie $35 in movie coupons from Kerasotes Theaters (yes, Showplace 12 on Wabash is about 2 minutes from Edwards Group LLC)

Ice Cream $15 for Culver's (maybe 40 seconds drive from my office...and yes, I know Culver's sells custard, not "ice cream"!)
Whether you have kids, if you used to be a kid, or if you know someone with kids, please pass along this info.

What is the KidSafe Legal Plan?

It's our process to help moms, dads, and kids out there with some of the same planning tools we use with our "grown up" clients. Not just "writing up a will" because that's not enough. But also dealing with emergency notification, how to choose the best guardians, financial organization and planning to make sure the kids can go to college, and many other steps.

The KidSafe Legal Plan is our process for addressing all the important issues to protect your kids. Subscribe to Being a KidSafe Parent newsletter to hear more details. Just click to request the report and be automatically added to the KidSafe mailing list. www.11ThingsParentsShouldKnow.com

Getting old ain't for sissies, you know

noreply@blogger.com (David Otis Edwards) — Fri, 21 Aug 2009 20:31:00 +0000

Here is another installment about getting older and how to do it with grace and peace of mind. This topic is important for each of us as we get older or as we watch loved ones getting older.

Some of you may be thinking - what does he know about getting older? Well, if you see me up close, you will see my gray hair coming in, and if you look at my driver's license you will see I am gaining fast on the big 4-0. (March 5, 2010 is the day!) But it is true I haven't personally experienced as many years as some of you reading this. So feel free to comment or correct me on any of the things I am saying about aging!

Getting old ain't for sissies: 10 Things to Think About

Here are some things to consider for yourself as you look at getting older. They are in no particular order, just my random thoughts from years of working with families facing these situations.

1. Are you having discussions about how you want to be cared for as you get older? Talk about it. Better yet, put your wishes down in legal documents so people are clear what you want.

2. Is your family prepared to handle things without your help, whether financially or otherwise? If not, you better make doubly sure things are set up right, so they get the assistance they need.

3. Have you lined up the financial resources needed if you became disabled? Such as disability insurance (at work or individual), long term care insurance, emergency fund savings. Do you have too much debt? Do you really want to be retired or facing a disability with credit card debt or a mortgage that's not paid off?

4. Who is going to help you with healthcare decisions? Who will encourage you to go to the doctor? Who will go to the appointments with you to make sure you stay as healthy as you can for as long as you can?

5. Are you spending too much? How does your income, savings, and spending line up if you look out a few years? Have you calculated how your savings will grow or shrink based on your current spending level? or do you need to have a professional help you do that?

6. Are you spending too little? You have worked hard and saved your money. It's OK to spend some and enjoy yourself by traveling or other things you enjoy. Or, if you truly have more income than you need and can spend, consider using those funds to increase what you leave at death. For instance, if you have IRA distributions you have to take (after age 70.5), use those distributions to pay life insurance premiums. Then leave the life insurance to your loved ones or a charity you believe in. When we run statistical projections for clients considering life insurance, they almost always show that a person leaves more money at death by purchasing life insurance. If you really don't need the money, parlay it into a bigger chunk with life insurance.

7. Never say never. Transitions and change are difficult. Are you laying down a gauntlet by saying "I never will..."? Instead, make a plan so you can enjoy the most freedom and as full a life as possible for as long as possible.

8. Are you willing to make a transition sooner than necessary so you can avoid losing control? By getting "greedy" and holding on too long, sometimes people can end up losing their independence more quickly. For example, a grandmother leaves the family home earlier than anyone thinks she needs to, and enters a retirement community, where she has less stress of home upkeep, and more social opportunity that keeps her young. Another grandmother waits too long, goes downhill at home by herself, gets hurt by falling, declines by not eating right. Then when she is later forced to move to another living arrangement, she can't enjoy the people or activities there because of declining health. Remember, there are endless variations to the type of retirement community or assistance a person can choose. Make choices while you still have choices, instead of having those choices made for you in a crisis.

9. Make gifts while you are around to see someone enjoy them. Gifts to your church or charity. Gifts to family (especially of heirlooms where you can share the story behind them). If you can, give some money and things away while you are still healthy so you can see how they bring joy and benefit to those who received it.

10. The ultimate question. I personally can never think about getting older without thinking about the ultimate question - what is there beyond this life? Some of you here know where I stand on that. I believe that faith in Jesus Christ leads to eternal life.

NEXT TIME

OK, next time, I want to share with you more about the 2 tasks each person faces as part of the final mission in life - preserving control and creating a legacy.

You can pick your friends, but you can't pick when you need your healthcare directives

noreply@blogger.com (David Otis Edwards) — Thu, 13 Aug 2009 19:35:00 +0000

Peace of Mind: documents without access to them?

I am writing this from Nashville, Tennessee, where I am on a family vacation. Every year, we spend a week with my parents, brother, sister in law, and nephew. Each year is a different place and Nashville is this year's destination. We have had a great week. We visited Andrew Jackson's home, the Hermitage, and spent a lot of time just taking it easy by the pool and resting.

In my last post, I started a discussion about aging and disability. Being out of town reminded me of an important part of planning for emergency health or disability issues. Suppose you work with me to plan for those issues, and we prepare healthcare powers of attorney and a living will. Then you are on a trip, maybe to Nashville or somewhere else out of state. If something happens and you end up in the hospital or emergency room, will you have access to your important legal documents? If the doctors ask for proof that your spouse or loved one has authority to make decisions on your behalf, will you be able to provide it? Will the doctors even talk to your loved one without written permission because of the privacy laws?

Do you travel with copies of your powers of attorney and living will? If not, then if something happens you may not have access to the documents when you need them. When we are talking about legal decisions regarding healthcare or end of life issues, lack of access to the documents at the right time means the documents are worthless at that moment.

If you don't have immediate access to the documents you need, what are your options?

Deal with it without using the legal documents. This means that your decisions and the helpers you have designated to carry out those decisions may not be followed, or at least won't be followed as easily, quickly, or accurately.

Try to get a copy of the documents from your attorney. Not a bad plan, but most law offices aren't open 24/7. What if you are injured in the middle of the night during a holiday weekend? Or maybe you are in Hawaii with a big time difference and the law office is closed when you contact them? Our office is always glad to provide copies of documents, but we can't guarantee we can get them to you around the clock.

Neither of these options is adequate. So, how do we make sure that you have quick access to the documents when you need them? For our clients who are members of our Dynasty Program, we provide a membership to DocuBank.

DocuBank

What is DocuBank? It's a business that was created to help people have immediate access to their legal healthcare documents when they need them. They have solved the exact problem we are talking about. For an annual fee, DocuBank will get copies of your documents to you, anytime, day or night, no matter where you are.

How does DocuBank work? As part of the planning process, our clients sign a DocuBank application that provides emergency contact info and important medical information. We then send that application to DocuBank, along with copies of the client's healthcare power of attorney and living will. The client will later get in the mail a wallet card they can carry at all times that explains how to access those documents. By calling an 800 number or logging in to a web site and putting in a PIN # (that is listed on the wallet card), DocuBank will provide the legal documents within minutes, either via the web or fax.

Check out more info at www.docubank.com.

Do you know someone who would appreciate the kind of peace of mind that a DocuBank membership provides?

Stay Tuned!

Aging - There's Only One Alternative

noreply@blogger.com (David Otis Edwards) — Mon, 27 Jul 2009 22:52:00 +0000

Getting older. We are all faced with it. As my dad has said, if you don't want to grow old, there is only one other option. (You know, die young...)

As I work with clients, I am constantly confronted with aging and death. How the circle of life comes around and all of us, eventually, will face declines in our health, mental ability, independence, etc. Depressing, isn't it? Well, it can be, I guess, but also involves not just death but how we live our lives now and the legacy we leave behind. And it makes us confront our ultimate spiritual reality and what we think happens after we leave this earth. (Don't worry, I'm not going to preach any sermons here...)

Since I started this blog, I have written about various individual topics as they come to my mind. But I think it makes sense to do a series of posts on this issue of aging and how to face it. Most of us have someone we love who is facing this issue (or will face it in the coming years).

___________

I am an avid newspaper reader. I often read most of the paper. I always make sure I look at 3 things: Dilbert, Dear Abby, and the box score from last night's Cardinal baseball game or Illini basketball game (depending on the season). Did you see today's Dear Abby? Here was the question:

Dear Abby: I am a single woman in my 60s who lives alone. One of my greatest fears is developing dementia. Because there is no one living with me, there would be on one around to notice changes in my behavior. I am still able to balance my checkbook, do my grocery shopping, drive myself to the dentist's office, etc. If I ever need assisted living, how would I recognize the fact so I could make other arrangements before requiring someone else to make them for me? --GROWING OLDER IN SAN DIEGO

Abby had an answer for her: ask your doctor to check you over during each annual physical exam. That's an OK answer, but I have better one.

Dynasty Program Membership

By planning with me and becoming a member of our Dynasty membership program, a person would have the best disability planning options available. We help clients name a "disability panel" that consists of both loved ones and at least one doctor, who will decide when the person needs help managing their affairs. Because our office has contact with each client at least once a year and most often several times a year, we are also able to watch for signs that a person needs assistance. In fact, we probably know our clients better than their doctors as to the daily living issues. We have spent hours and hours with them over the years.

Once assistance is needed, our clients have already set out instructions in legal documents that outline how they want to be cared for toward the end of life.

Powers of Attorney?

Some of you reading this have probably signed documents granting powers of attorney. You may be thinking "isn't that enough to plan for disability?" Well, those are important documents, but pull them out and see what instructions are included in there. There are a lot of powers given in those documents, but very few instructions. Where in the power of attorney does it talk about whether you have a preference to be cared for at home rather than a nursing home? Do you have an opinion about that issue? If so, does it make sense to have it written down somewhere in your estate plan?

Like a Library Burning Down - preserving your memories

noreply@blogger.com (David Otis Edwards) — Sun, 12 Jul 2009 00:58:00 +0000

Libraries hold books so others can read them and learn from them.

Our minds hold stories and wisdom that can help others. As part of our legacy, we need to preserve our lives and our stories for those who come after us. If we don't do something to preserve the stories before we die, then it's like a library burning down. When we die without preserving our stories, those stories are lost forever.

I am a member of the Legacy Builder Network, and its founder Scott Farnsworth co-authored a book called:

Like a Library Burning Down: Saving and Preserving Lifetime of Stories

You should check out this book if you are interested in preserving your legacy, or helping loved ones preserve their legacy (such as your parents or grandparents.

Libraries - the real ones and the ones in our mind

noreply@blogger.com (David Otis Edwards) — Sun, 12 Jul 2009 00:01:00 +0000

I have been thinking about how specific places help us remember stories and times from our past. I'm talking about specific geographic places on the earth. Just by returning there, memories flood back, many more and in more detail than you would have without going to that place. The detail is much more vivid. Something about the sights, sounds, even the smells. Do you remember how your grandparent's house smelled? What about the school or church you went to as a kid? Maybe you don't remember what it smells like now, but if you smelled it again, would you recognize it?

Today I had one of those experiences. And it wasn't even a place I had ever been as a kid. But it was a place that was similar to places I went years ago. This morning Bailey and I went to the library. The west branch of the Lincoln Library on Washington Street in Springfield, Illinois. Just being there bought back memories of going to the library as a kid in Taylorville, Illinois.

The Taylorville library was an old building, built with money from Carnegie (according to Wikipedia, $14,000 grant in 1903). The Taylorville library has a much newer building now, but I found nothing on their web site about the library's history.

Some of my thoughts and memories:

1. When I was in grade school in Taylorville, Illinois, I went to Memorial School. The school was a few blocks from the old city library, just off the Taylorville square. I used to walk to the library sometimes after school. The basement was the children's area. The children's librarian was a baseball fan (of the Royals if I remember right) and sometimes she would have the radio on to a Cardinals or Cubs game if it was a late game still going after school.

2. I remember being in a reading contest one summer where you got various stickers or something that were all related to knights and serfs.

3. I remember the library card that was just a little retangular card with a paper sleeve to keep it in. No bar codes or fancy plastic cards, just a handwritten name and library number on a pre-printed card.

4. Today some of the books I looked at still had those little pouches in front of the books for the due date card (which of course they don't use anymore).

5. I remember the library being such a peaceful place (both now and when I was a kid). Where things are quiet (or supposed to be - Bailey was talking another kid's ear off today in the kids' section!). Where people are not in a rush, but they are browsing around looking for the right book. No rushing in and rushing out like we do in most of our lives. And no self service here. Even now with the bar codes, you have to go to the librarian who scans them in and reminds you when they're due.

6. Over the years, I have gotten in the habit of buying books instead of going to the library. Some books I like to write in and highlight. Other books I just want to have around. I like books. But I was reminded today that I also like libraries.

7. What's to become of libraries? In Springfield, the city budget is in shambles (a lot like our state budget and our stimulus packaged federal budget). And one of the places to cut is the library budget. Unfortunately, I am one of the reasons the city budget is in such dire straights. Today when I went to check out books, I found out that my library card had an overdue fine of 60 cents owing since 1999. I paid it (after I dug some change out of my car, didn't have any other cash on me!)

Michelle has been taking Bailey to the library regularly, both in Springfield and Chatham. I like that. I want her to grow up with great memories of libraries and all the books and things to learn and the peace and quiet there.

What are your memories of going to the library?

my theory about lawyer jokes

noreply@blogger.com (David Otis Edwards) — Fri, 10 Jul 2009 15:39:00 +0000

You want to hear my theory about lawyer jokes? I figure most of them are based in truth. The jokes are so popular and cause us to laugh so much because there is at least a nugget of truth in there. Well, I mean a nugget of truth regarding the legal industry. That, as an industry, lawyers have often been too greedy, arrogant, mean, unapproachable, unlikeable, and expensive.

I hope that the way I practice law is so different that no one would recognize how I work as being anything like those jokes. In fact, I want to be the lawyer who doesn't look, sound, smell, or listen like a lawyer. Do you think I'm succeeding?

Lawyer Jokes - #3 - the one with a pig in it

noreply@blogger.com (David Otis Edwards) — Fri, 10 Jul 2009 14:16:00 +0000

yet another lawyer joke...

A Rabbi, a Hindu, and a lawyer are in a car. They run out of gas and are forced to stop at a farmer's house. The farmer gladly accommodates them, but tells them that there are only two extra beds, so one person will have to sleep in the barn. The Hindu says, "I'm humble, I will sleep in the barn." So, he goes out to the barn. In a few minutes, the farmer hears a knock on the door. It's the Hindu. He says "There is a cow in the barn. It's against my beliefs to sleep with a cow." So, the Rabbi says, "I'm humble; I'll sleep in the barn." A few minutes later, the farmer hears another knock on the door and it's the Rabbi. He says that it is against his beliefs to sleep where there is a pig, and there is a pig in the barn. So, the lawyer is forced to sleep in the barn. A few minutes later, there is a knock on the door. It's the pig and the cow...

Lawyer Jokes - #2 - engineer and lawyer

noreply@blogger.com (David Otis Edwards) — Fri, 10 Jul 2009 11:10:00 +0000

Another lawyer joke. From those who shared after I asked people to share jokes in one of my email newsletters:

An engineer dies and reports to hell. Pretty soon, the engineer gets dissatisfied with the level of comfort in hell, and starts designing and building improvements. After a while, they've got air conditioning and flush toilets and escalators, and the engineer is a pretty popular guy.
One day God calls Satan up on the telephone and says with a sneer, "So, how's it going down there in hell?" Satan replies, "Hey things are going great. We've got air conditioning and flush toilets and escalators, and there's no telling what this engineer is going to come up with next." God replies, "What??? You've got an engineer? That's a mistake -- he should never have gotten down there; send him up here." Satan says, "No way. I like having an engineer on the staff, and I'm keeping him." God says, "Send him back up here or I'll sue."
Satan laughs uproariously and answers, "Yeah, right. And just where are you going to get a lawyer?"

Lawyer Joke Quiz - name that punchline

noreply@blogger.com (David Otis Edwards) — Fri, 10 Jul 2009 03:19:00 +0000

In a recent newsletter, I asked people to share lawyer jokes with me. And I also did a lawyer joke quiz, putting out a punchline and asking if people could identify the joke that goes with it.

Can you identify these jokes by their punchline?

"It's OK, I got him with the door."
"A good start!"
"They don't get as attached to the rats. Plus, there are some things a rat won't do."

OK here is the answer key - the jokes that go with the punchlines. Keep in mind - these are my own paraphrases of these jokes.

Got him with the door

There was a truck driver whose route took him every day right by the courthouse. Since he had no love for lawyers, he would always try to hit one or two of them who were walking along the rode as he drove by. Well, one day he was driving along and saw someone hitchhiking. He looked a little closer and it was a priest. He figured he better not drive past without stopping, so he picked up the priest. As they were getting closer to the courthouse, he thought "I better not hit any lawyers with the priest right here". But as he came up to the courthouse, he saw a great target walking right along the road and it was too tempting to pass up. So he begin to veer toward the lawyer with his truck. But at the last minute, he remembered the priest was there, so he swerved suddenly to miss the lawyer. But he still heard a thump and looked in the rearview mirror to see the lawyer rolling on the road. He turned to the priest and said, "Father, I'm sure I missed that lawyer back there." The priest said "That's OK, my son, I got him with the door."

A good start

What do you call 10,000 lawyers at the bottom of the ocean? A good start.

The one about the rats

Did you hear that scientists are now using lab rats instead of lawyers for their science experiments? Yeah, the scientists don't get as attached to the lawyers. Plus, there are some things a rat just won't do.

Lawyer Jokes - #1 - lawyer's deal with the devil

noreply@blogger.com (David Otis Edwards) — Fri, 10 Jul 2009 03:08:00 +0000

A week or so ago, I did an email newsletter asking people to share lawyer jokes with me. So here I go sharing some of them.

A Lawyer’s Deal With The Devil

An aspiring young lawyer was sitting her office late one night, when Satan
appeared before her.

The Devil told the lawyer “I have a proposition for you…”

“You can win every case you try for the rest of your life. Your clients
will adore you, your colleagues will stand in awe of you, and you will make
embarrassing sums of money. All I want in exchange is your husband’s soul, your
children’s souls, the souls of your parents, grandparents, and the souls of all
your friends and law partners.”

The lawyer ponders this for a moment, then finally asks: “So, what’s the
catch?”

Please, not another blog about Michael Jackson

noreply@blogger.com (David Otis Edwards) — Thu, 09 Jul 2009 21:34:00 +0000

There are 2 kinds of people in the world. Some can't get enough of the Michael Jackson saga. Others are complaining about how all the real news in the world is being drowned out by old Michael videos and talking heads analyzing his dysfunctional family. If you're in the 2nd group, my apologies. But below is more about Michael and his estate planning.

Also, if you want another interesting take on Michael's estate plan, check out the blog post of my colleague Victor Medina - "Michael Jackson's Estate Plan - What He Did Right!"

MICHAEL JACKSON: Part Two

1. Don't you want to avoid confusion? With Michael, there was a time period where it wasn't clear whether he had a Will or not. In fact, his mom went to court and told the judge there was not a Will and asked that she be given power as the administrator. Now things change once the Will is presented to the court. Good planning will avoid this limbo period where people are wondering if there is a Will and where it is. Good planning will make sure that the right people know how to quickly get their hands on legal documents that you have prepared.

2. Who is a good choice as guardian of your kids? Michael's mom is 79 years old. His youngest child is 7. If I have my math right, she will be 90 years old when he gets out of high school. Is she the best option as guardian? Under Illinois law, do you know who is qualified to raise your kids? Anyone over 18 who is not a felon but is U.S. citizen. So from that pool or people, the judge has to pick someone who is in the best interest of the child. In Illinois, the court will lean strongly toward following the parent's wishes in naming a guardian, but is not absolutely required to name the guardian you list in your Will. If you properly name a guardian in writing, then your choice has "prima facie" validity. This means that the court presumes that your guardian choice is best, but the court may approve someone else if evidence shows that is better.

3. What about the other parent? The mother of 2 of Michael's kids, Debbie Rowe, is to have nothing to do with them, according to his family at a press conference. She was not named as a guardian. I am assuming that she gave up all her parental rights because (in Illinois) the other surviving parent will continue to be the child's guardian, regardless of what the Will said, unless their parental rights had already been terminated.

4. No planning = 18 year old with money. I assume that Michael's trust provides for his children and gives instructions about how their money will be managed and when and how they can spend it or take control over it. But, if he had no plan or they couldn't find the documents, then the law (at least in Illinois), is that kids get their money at age 18. Would your 18 year old high school senior be ready to receive your wealth (home, retirement plan, life insurance, etc.)?

5. Don't be distracted by the big numbers. Don't get caught in the trap that only rich people like Michael need to do estate planning. We should just call it "planning" and get rid of the term estate. Every person, regardless of their wealth or family situation, should do some kind of planning for when they are disabled or pass away. Good planning to make things easier, better, cheaper, smoother, quicker - for you now and your family later. Even doing nothing is a plan in itself.

6. End up like Elvis? Part 1. Michael was afraid he would end up dying young like Elvis. Hopefully Michael's estate won't end up like Elvis. When Elvis died, his estate was worth about $10 million, but by the time expenses, taxes, lawyers, and probate fees were all paid, there was less than $3 million left.

7. End up like Elvis? Part 2. Despite Elvis' lack of planning for his death, his family has done very well with the family business. A few years ago, the family sold most of their Elvis rights for $100 million. From being worth $3 million to over $100 million in 30 years. Not bad. I say do both - set up good planning that handles your estate properly now, but also sets up your family for greater success later. Elvis's family overcame bad initial planning to successfully grow the family wealth. Don't make your family have to overcome that obstacle.

Wealth Transfer or Wealth Reception - Part #2 - The College Years

noreply@blogger.com (David Otis Edwards) — Mon, 06 Jul 2009 04:19:00 +0000

I went to U of I in Champaign-Urbana. Both undergrad and law school. A lot has changed since I left law school in 1995. Many new buildings, and tuition has gone way up. Do you know how much it will cost now for 4 years of undergrad, including tuition, books, room and board, etc.? Somewhere around $100,000.

Suppose your kid is ready to head to college this fall. He gets all his stuff packed, buys that little fridge, picks out a shower caddy thing, and is ready to head off to college. The day comes where you pack up the mini-van and head to Champaign. You help carry all the stuff into the dorm, give him a hug, tell him to behave himself. Then you pull out your checkbook and say "Well, since we know it's going to cost you about $100,000 to get through the next 4 years, I thought I would go ahead and give it to you now." So you write out that check, hand it over, get in the car and drive back home.

Assuming you had $100,000 sitting around that was earmarked for your child's college, would you do it this way? Would you hand the entire amount over on the first day he moves in to the dorm? No? You wouldn't do that? Why on earth not?

Well, I guess there could be a few "complications".

1. He might not spend it wisely. You know, parties or a new car or who knows what? Then runs out of money before he gets the degree.

2. He might be taken advantage of. If word got out that he had a big wad of money just handed to him, do you think he would have any new "friends" that might be interested in hanging out? I'm sure there would be plenty of kids willing to help him make some financial decisions.

3. He might be less motivated to work hard. Hey, you're only young once. Doesn't it make sense to have some fun with a little of that money now? He figures he can always get a job during his last year or two of college to make up the difference.

4. What if he gets in trouble? Maybe gets in a car wreck and gets sued? Or gets in with the wrong crowd and makes a bad decision that leads to property damage or criminal charges?

5. He isn't emotionally ready to handle that kind of money. You just handed him $100,000, even though he's never had more than $500 in discretionary money to himself before now.

6. What if his plans change? Maybe he flunks out, changes his major, takes a semester off, or drops out of school to start a band? Are you expecting to get change back on your $100,000 if he doesn't finish with a degree?

7. He might fall in love. Yes, love can do strange things to someone's financial decisions.

WEALTH RECEPTION?

Well, I guess you realize that people die all the time leaving assets to their kids. And those kids may not be any more ready to receive it than your college student was to receive that $100,000 right now.

Let's say something happens to you tomorrow and you left all your assets (house, retirement plans, life insurance, bank accounts, etc.) to your kids. Would the amount of money you leave them make an impact on their daily lives? How much impact? Very little, some, or a whole bunch? Would the lifestyle they could afford be changed?

Think of the specific amount of money you would leave if you died tomorrow. How much will it increase your child's net worth? Double it, triple it, make it go up 10 times or a 100 times? or more?

All those issues that cause concern about the college student are the same issues we address with clients in estate planning. These issues are what I call "wealth reception" issues. It's not just about how quickly we can get the check to the kids. More important is what impact, good or bad, will the money have on the kids after they get it. And will the wealth better their lives one year, 5 years, or 10 years after you're gone?

David Otis Edwards
wealth reception attorney
Edwards Group LLC
Springfield, Illinois

My new newsletter bio

noreply@blogger.com (David Otis Edwards) — Sun, 05 Jul 2009 14:41:00 +0000

Here is the new bio I started using with my email newsletter.

ABOUT ME

My name is David Otis Edwards and I founded Edwards Group LLC in December 2008 to serve the planning needs of individuals, families, businesses, and non-profit organizations through lifetime-focused strategies. My clients include young families with minor children, families with special needs children of all ages, farmers, business owners, established families with dynasty goals and the elderly. I also regularly represent churches and non-profit organizations in carrying out their missions. In matters of estate planning, I provide tailored plans that focus on passing on more than just financial wealth, but also spiritual, emotional and intellectual assets.

My goal is to become the trusted advisor and lifetime legal counsel for my clients. I keep ongoing contact with my clients through newsletters as well as through our client maintenance program, which helps clients keep their planning up to date, so it's ready when they need it.

I have a B.S. in Finance from the University of Illinois at Urbana-Champaign, as well as a J.D. from the University of Illinois College of Law. During law school, I served as an Associate Editor of the school's law review (academic law journal) and was honored as part of the Order of the Coif, an honor society for those in the top 5% of their law school class. In recent years, I have been honored by the Springfield Business Journal as one of the "40 under 40" for 2006 (40 top business leaders under age 40). During 2008 and 2009, I was named as a Rising Star by Super Lawyer Magazine, which is an award chosen by my peers and given to only the top 5% of attorneys in Illinois under the age of 40. I have represented clients before the Illinois Supreme Court, as well as every other federal and state appellate court in Illinois.

I am a member of the National Network of Estate Planning Attorneys, whose members are devoted to pursuing the highest quality estate planning practices (both as to client experience and as to legal expertise), even when that means bucking the legal industry by exposing weaknesses in traditional legal planning.

I believe in making a difference in my community. I serve on the board or other leadership capacity in various local organizations, including Habitat for Humanity of Sangamon County, Rutledge Youth Foundation, Brother James Court, Delta Church, and the Young Philanthropists of the Sangamon County Community Foundation. The community room in my office (which seats up to 20 people) is available to any community group needing a place to meet.

I have some of the most wonderful and interesting clients any attorney could wish for. I am honored to share life with my clients and their families.

I enjoy serving my clients, but my even greater joy comes from spending time with my wife Michelle and daughter, Bailey. Michelle is a nurse at Memorial Medical Center and is a certified teacher. She is also my personal historian and scrapbooker. Bailey is 2 1/2 years old, full of energy, and loves to make up songs, read books, play with her dolls, and go down the slide at the park.

Michael Jackson: King of Pop (and Estate Planning?)

noreply@blogger.com (David Otis Edwards) — Fri, 03 Jul 2009 13:49:00 +0000

Are you tired yet of hearing about the Michael Jackson saga? One thing for sure, the gossip media should have plenty to talk about for quite a while. It turns out Michael did have a Last Will & Testament after all. (Thanks to those who sent me links to good articles on his estate issues.) Despite the circus atmosphere, Michael's estate situation gives us some reminders about important planning issues:

1. Wills are public. Usually, there are many issues that are much more important to your family than keeping your estate matters secret. But at the same time, do you really want people to see your private info? And with increasing online access to court records, it will be easier and easier for your neighbor or nosy relative to look at your Will in court records without leaving home.

2. Living Trusts are private. A living trust is a good way to keep your info private at your death. And that's exactly what Michael did. Look at his Will. It is what we call a "pour over will", meaning his will doesn't have much in it except instructions to dump assets at his death into what they are calling his "Family Trust" (which is private and will stay private). So all the gory details about who gets what and when they get it are only in that private document, incorporated by reference into his Will. And it seems to me that Michael's Will actually included more info than necessary. For instance, I usually would not put something in the Will about disinheriting anyone (as he did with is ex-wife). That kind of info can go in your trust to keep it all private.

3. Asset titling is key. We haven't seen how this part plays out yet. Even though Michael had a living trust, if he didn't properly title his assets in that trust before his death, then the probate court will have to do it using his will. Without assets organized properly, he will lose part of the benefits of the living trust.

4. Feeding frenzy? Michael's death is a media frenzy, but also a money frenzy too. Friends, relatives, business associates, will all be scrambling to take financial advantage. Those who are controlling his assets will be approached by all kinds of people with all kinds of ideas and schemes, all designed to get some money from the estate. Marlon Brando's estate attorney said people came "out of the woodwork making all sorts of claims" after Brando died. At your death, who will be in charge of your estate and who will be at risk for being taken advantage of?

5. Personal items are important. There is a court dispute over 2,000 personal items. Michael's mom has control of them, but the real executors want them back. The judge told them to try to work it out. I have seen a lot of hurt feelings and disputes over personal items, sometimes of small dollar value. But sometimes the items of small dollar value have huge sentimental and emotional value. What have you done to make sure your personal items don't cause a dispute later? What have you done to preserve the stories behind items of emotional value?

6. We never know when. We look at Michael and figure he was living a life on the edge that could lead to an early death. But the fact is that none of us know when our time is up. One thing about estate planning - you need to do it when you don't need it, because when you need it, it's too late to do it.

I have more comments to make about MJ's estate, but I will wait until next time. And I would love to hear your comments on my comments or on Michael's situation.

David Otis Edwards, Springfield, Illinois

Living Trust: valuable tool for Disability Planning

noreply@blogger.com (David Otis Edwards) — Fri, 26 Jun 2009 12:03:00 +0000

As I mentioned before, it's my job to use whatever tools will best get the job done for the client. What will work best to build the plan the client wants?

Although it's not the client's job to understand all the tools that we use in the plan, most clients end up with a basic understanding of how a living trust works by the time we are done designing the plan.

Living Trust - not just to avoid probate

In most plans, a living trust is the most useful tool to accomplish a lot of important goals. The living trust does help a client avoid probate, if used properly. This has been a big focus over the years by both attorneys and clients. But that's only the beginning.

Disability Planning: Don't settle for a "blank check" power of attorney

The living trust is also the best vehicle to help do detailed disability planning. Powers of Attorney typically give a power as a "blank check" with no guidance, but a living trust is different. A living trust allows you to do disability planning that gives a lot of details about how you want to be cared for, who will manage the funds while you are disabled, who can they spend money on during your disability, and who decides whether you are disabled in the first place. The power of attorney simply grants raw power without much guidance about how to use it. A living trust grants similar power but then can give lots of guidance, procedures, preferences, and instructions to be used by those managing your money when you are too sick to do it.

The goal of disability planning within a living trust is to have you and your family cared for during your disability in the same way you would have done it yourself, if you had been able.

David Otis Edwards
living trust attorney
Springfield, Illinois

Estate Planning: What's in your tool box?

noreply@blogger.com (David Otis Edwards) — Wed, 24 Jun 2009 14:55:00 +0000

What tools do you want to use?

Is this the first question that your contractor asks you when you decide to
hire him to build a house?

Or, if you're car stops running and you take it to the mechanic
to be fixed, do you quiz him on which tools he plans to use in
repairing it?

When you need surgery to save your life, do you make sure you
learn all about the different scalpels and various medical instruments to be
used by the doctor?

No? You don't focus on those things?

Well, then why do people focus more on the estate planning tools than on what they want to accomplish with their plan?

Wills, Living Trusts, Powers of Attorney, various other planning or tax strategies. All of these are just tools. Tools in the tool box of an estate planning attorney who is there to help you build the kind of plan you want. If the plan looks and does what you want, then does it really matter what tools were used to get there?

The division of labor is much clearer in some of the other professions - doctor, contractor, mechanic, etc. But with law, it seems that attorneys have fed the confusion by hyping and selling certain "tools" instead of promoting their process of helping clients build a plan that works for them. Sure, some clients want to understand the tools, and that's fine.

But, remember, the tools are not what's important. What is important? Having your wishes, goals, and dreams carried out, in a way that allows your wisdom and values to be communicated as well.

My clients are already the experts on what they need to know. They know their families, values, what's important to them. I am the mechanic with the tool box, and I can use whatever tools are necessary to help you carry out your plan.

So, if you want to work with me on your planning, please keep in mind that we want to focus our energy on the house we are building, not what kind of hammer is being used to build it.

David Otis Edwards
Edwards Group LLC
estate planning attorney
Springfield, Illinois

Wealth Transfer or Wealth Reception - Part #1

noreply@blogger.com (David Otis Edwards) — Tue, 23 Jun 2009 04:04:00 +0000

Successful Planning, Successful Living

I help clients carry out the goals they have for themselves and their families. However, I always want to make sure clients have developed goals with a full understanding of what all can be accomplished with good planning. Sometimes they limit themselves and don't explore some of the most important planning issues, until I prompt them to think a little broader.

You might ask yourself:

How do you define a successful estate plan?

How do you define a successful life?

Traditionally, many planning issues have focused only on the transfer of wealth. But most of us would probably agree that just avoiding probate or saving some tax money is not all that is required to have lived a succesful life. Isn't there more to life than that? And there's more to estate planning too.

There are so many more issues that clients want to address, once they hear about the possibilities. I think a good plan will carry out the goals you would have completed during your life, with enough time and resources. But since our time on earth is limited, we plan so our influence can continue.

1. If you could plan in a way that would protect your loved ones from risk or harm, would you be interested in hearing more about it?

2. If you could plan in a way that would set up your loved ones for greater success in the future, would you be interested in hearing more about it?

3. Is the focus of a plan simply to transfer the wealth, or to help that wealth accomplish the greatest good in our families and in the community?

4. What is money worth, except for what it can accomplish?

5. What could your money accomplish in those who survive you? Those you care the most about?

6. If you could communicate your wisdom, and your loved ones would apply it, what frustrations could you spare them?

7. What if you were able to transfer both your wisdom and your wealth, in what ways could that benefit those who survive you? How would it be better than just transferring one or the other?