ESTATE STREET

How to Handle Social Media Accounts at the Death of a Loved One

2012-02-13T08:25:00.004-07:00

Social media accounts like Facebook or Twitter set up private contracts between the user and the company. These private contracts can make it difficult to deal with a person's social media account once they have died. Each social media company looks to their private policies when dealing with a deceased person's account. As survivors of a decased person try working with the social media companys, they are finding there are not many laws out there covering social media death issues. A very interesting article in the Wall Street Journal titled, "Deaths Pose Test for Facebook" by Steve Eder covers this facinating issue.

Estate Planning And The 529 Plan

2012-02-07T10:18:00.002-07:00

A 529 education plan is a great way to start saving money for a child's education and can be a valuable estate planning tool. For estate planning purposes, a 529 education plan can be used to reduce estate taxes if estate taxes are an issue for you or prepare for your child's education in the event you die before your child becomes old enough to get a secondary education. In estate planning, it is important to look at all the "what if" scenarios and try to prepare for those scenarios. It is the same with a 529 plan. One "what if" scenario that must be addressed is what if the 529 funds outlast the child's 529 education plan. The Wall Street Journal has a great article covering this very "what if" scenario. The article entitled, "What to Do With Leftovers in 529 Plans," written by Georgette Jasen gives options enabling an individual to make an educated decision if a 529 plan ends up with "leftover" funds.

Who Gets Dad's Old Anvil

2012-02-06T08:47:00.003-07:00

Once both parents have died, the children have a big job ahead of them. It litterly can take years to wade through all the accumulated stuff. And the stuff might really be valuable (not just monetarily). The sentimental value of a certain item can help ease the lose of the loved one as family reminisces, or it can cause the dreaded family fight that keeps family members from talking to each other for years. An article written by Kelly Greene of the Wall Street Journal entitled, "The Pearls Are Mine!" gives some good suggestions for working through the mountain of stuff in an timely and friendly way.

Definition of the Week: Grantor

2011-11-09T07:00:00.001-07:00

Grantor: A grantor is a person "granting" or transferring assets to a trust. Some practitioners and state statutes use the word "settlor" or "trustor" or "maker" or "creator." At Hughes Estate Group, we use the word used by the Internal Revenue Service, the tax courts, and most state courts: "grantor."

Joke of the Week

2011-11-07T07:00:00.000-07:00

An elderly couple is lying in bed one morning having just awakened from a good night's sleep. He takes her hand and she responds, "Don't touch me!"

"Why not," he says.

She answers back, "Because I'm dead."

The husband says to her, "What on earth are you talking about? We're both lying here in bed together and talking to one another."

The wife says, "Not so, I'm definitely dead."

Her husband insists, "You're not dead. What in the world makes you think you are dead?"

His wife answers, "I know I'm dead because I woke up this morning and nothing hurts."

A Second Marriage And Children Of The First Marriage Fight With Murder Thrown In

2011-11-03T07:00:00.001-07:00

Judge Patrick Maqubela, acting judge in the Western Cape High Court, was suffocated June 5, 2009 in his Bantry Bay flat. He wife of his second marriage, Thandi Maqubela, has been accused of co-conspiring to kill him.

At the time of his death, Thandi Maqubela declared her husband had died intestate or without a testamentary document in place. Later, she declared that she had found his will. The difference between how Mr. Maqubela's R20m estate would be distributed by the laws of intestate versus by a will it hugh.

According to the intestate laws of South Gauteng, Thandi Maqubela would receive half the estate and Mr. Maqubela's five children would receive the other half to be divided in five equal shares. With the will, the two children from Mr. Maqubela's first marriage are completely cut out of the will and Thandi Maqubela's daughter from a previous marriage is named a beneficiary. Mr. Maqubela's son from his first marriage, Duma, is contesting the validity of the will saying that he cannot believe his father would disinherit him and his sister, Patiwe.

A full article reporting on the situation can be read here.

Definition of the Week: Trustee

2011-11-02T07:23:00.002-07:00

Trustee: The trustee is the person who manages and distributes trust assets for the benefit of beneficiaries.

Unique Coffins Seen Around The World

2011-11-01T07:00:00.000-07:00

I read a very interesting article in the Wall Street Journal that mentioned the kinds of coffins being made now-a-days for people to be buried in. The article explores the human rituals that attend death and what people sometimes are buried in. To quote one paragraph, "We bury our loved ones in the ground. We burn them in fire. In some cultures, we leave corpses as carrion, inviting the birds to pick the bones dry. In others, we hang the dead in trees or stow them in caves. In naval circles, we consign them to the ocean." The article mentions an airplane coffin made for a grandmother who never had a chance to fly in an airplane. It really is a fun article to read. The full article can be found here.

Joke of the Week

2011-10-31T07:00:00.000-07:00

Excerpt from the classified section of a city newspaper:

Dog for sale: eats anything and is fond of children.

Movie Review: Snowball Express

2011-10-28T07:00:00.002-07:00

Here is another inheritance movie. Disney's classic, Snowball Express (1972), is just plain fun. The story is about the crazy adventures a family has when they move to Colorado to try and make an inherited run down hotel a success. Of course, there are the good and bad guys and the ultimate "snowmobile" race to see which side wins.

The movie can be found here.

Moving To A New State With Estate Documents In Place

2011-10-27T07:00:00.000-07:00

If you have estate documents (wills, trusts, powers of attorney, etc.) and you move to a new state, it is always good to have an estate planning attorney in the new state review your documents. A general rule of thumb is wills and trusts will less likely need to be amended with a move to a new state. Powers of attorney, especially health care, will more likely need to be amended to meet the new state's requirements.

Definition of the Week: Simple Distribution Plan

2011-10-26T07:00:00.000-07:00

Simple Distribution Plan: A simple distribution plan calls for immediate distribution of assets to your beneficiaries at your death. A simple distribution plan is relatively easy to draft and can sometimes be done without a trust. Because it is easier to prepare, a simple distribution plan is less expensive than a complex distribution plan.

Basic Stages of Life

2011-10-25T07:00:00.000-07:00

There are three basic stages of life. Different estate documents are used for each stage of life.

The first stage of life is when an individual is alive and mentally competent. At this point in a person's life, not estate documents are necessary. However, this is the time an individual should put estate documents in place for the next two stages of life.

The second stage of life is when an individual is alive and mentally incapacitated. At this point, powers of attorney can be used to establish authority and begin acting for a person in the second stage of life. If powers of attorney have not been created, an individual seeking authority to act for a mentally incapacitated person must petition a court for that authority in a guardianship/conservatorship proceeding.

The third stage of life is when an individual dies. Once someone dies, the powers of attorney or a guardianship/conservatorship ends. At the point of death, trusts and/or wills are then used to establish authority and distribute a deceased person's estate to beneficiaries. If there is not a properly funded trust or there is only a will or there is no will at all, most likely authority to act on behalf of a deceased person must be sought through the probate court.

Joke of the Week

2011-10-24T07:00:00.001-07:00

Neighbor: "Where are you going Beatrice?"

Great Aunt Beatrice: "To see my Arithmetic Relatives."

Neighbor: "Why do you call them that?"

Great Aunt Beatrice: "Because they add to my misery, they subtract from my pleasure, they divide my attention, and they multiply like the dickens."

Movie Review: Scavenger Hunt

2011-10-21T07:00:00.002-07:00

Here's an inventive way to give away your estate. Have your relatives participate in a scavenger hunt where the winner inherits all. Scavenger Hunt (1979) is exactly that. In this comic movie, the relatives and even the servants compete for the prize: the $200 million dollar estate.

Check out this review.

The Mummy Bequest

2011-10-20T07:00:00.004-07:00

It is a personal decision whether or not you want your body donated at your death as organ transplants or even for medical research. In recent years it has become more and more common for individuals to make these kinds of donations. Alan Billis, a former British taxi driver, donated his body for scientific research. What makes his end-of-life bequest unique is that he donated his body to be mummified in the same way the pharaohs were mummified. In fact, the mummification process on Mr. Billis will become a documentary titled Mummifying Alan: Egypt's Last Secret. His family was supportive of Mr. Billis's decision and joke about their claim to a real live mummy in the family.

Read more about it here.

Definition of the Week: Complex Distribution Plan

2011-10-19T07:00:00.001-07:00

Complex Distribution Plan: A complex distribution plan requires at your death that your assets be distributed over time, in certain amounts, or under certain conditions. A complex distribution plan is generally more difficult and time consuming to draft than a simple distribution plan. A complex distribution plan requires use of a trust. A complex distribution plan is more expensive to prepare than a simple distribution plan. Hundreds of reasons exist for Complex Distribution Plans.

William Shakespeare and Edward De Vere's Estates

2011-10-18T07:00:00.003-07:00

No matter which side you take--William Shakespeare is "the" William Shakespeare or Edward De Vere is "the" William Shake-speare--it is of interest to look how their heirs inherited each of their estates.

The Stratfordian Shakespeare's Will

William Shakespeare of Stratford prepared a will before he died.

To his daughter Judith he willed:
- 100 pounds for a marriage portion and another 50 pounds if she renounced any claim to the Chapel Lane cottage.
- An additional 150 pounds if Judith lived another three years, but forbade her husband any claim to it unless he settled on her lands worth the 150 pounds.
- If Judith did not live another three years, the 150 pounds was to go to Shakespeare's granddaughter Elizabeth Hall.
- A silver bowl
To is sister, Joan Hart, he willed:
- 30 pounds
- Life estate with nominal rent in the Western of the two houses on Henley Street, which Shakespeare himself inherited from his father in 1601.
To Joan Hart's sons, his nephews, he willed:
-5 pounds to each of Joan's three sons.
To his granddaughter, Elizabeth Hall, he willed:
- All his silver plates, except the silver bowl left to Judith.
To the poor of Stratford he willed:
-10 pounds to the poor of Stratford.
To his friends he willed:
- His sword and various small bequests to local friends.
- Memorial ring to be bought for his lifelong friend Hamnet Sadler
- Memorial rings to be bought for John Hemynges, Richard Burbage, and Henry Cundell
To his wife, Anne, he willed:
- His "second best bed."
To his daughter, Susanna and Son-in-Law, John Hall, he willed
- "All the Rest of my Goods, Chattels, Leases, Plate, Jewels & Household stuff whatsoever after my debts and Legacies paid & my funeral expenses discarded."

Oxfordian Shake-speare's Estate

Edward De Vere was the 17th Earl of Oxford. He inherited the Oxford estate when his father died. Titled property usually was inherited by the oldest son in a nobleman's family. Edward De Vere had only one living son, Henry, from his second wife, Elizabeth.

Edward did sell some of his estate during his life, and established a trust fund for his three living daughters from his first wife, Anne. His three daughters, Elizabeth, Bridget, and Susan all married men of title as well.

The remaining estate went to his second wife, Elizabeth, and his son, Henry, who became the 18th Earl of Oxford.

Joke of the Week

2011-10-17T07:00:00.002-07:00

It usually takes five years for a tree to produce nuts, but this isn't true of a family tree.

Book Review: Special Needs Trust Administration Manual: A Guide for Trustees

2011-10-14T07:00:00.004-07:00

Special Needs Trust Administration Manual: A Guide for Trustees, written by Barbara Jackins, with contributors Richard Blank, Peter Macy, Ken Shulman, and Harriet Onello, covers everything a trustee of a special needs trust needs to know in administering a special needs trust.

It is crucial that a trustee, especially if it is a family member of a special needs individual, understands how to spend special needs trust funds appropriately so that a special needs individual's government benefits are not harmed. It is also important for the trustee to report to government agencies how special needs trust funds were spent. This guide for trustees can be helpful in preventing mistakes that could cost a special needs individual dearly.

You can review the book here.

"Portability" of Estate Tax Exemption to Spouse

2011-10-13T10:04:00.007-07:00

"Portability" as mentioned in the October 8-9, 2011 Wall Street Journal "allows a surviving spouse in effect to roll over the unused portion of a deceased spouse's [estate tax] exemption."

Ms. Saunders in her Wall Street Journal article mentions that the IRS has clarified what needs to be done if a spouse wishes to carry over the deceased spouse's unused estate tax exemption to their own estate. She indicates that the IRS has done some clarifying, but it will only apply to 2011 and 2012 unless Congress applies the same estate tax provisions to future years.

One important point is that even if the deceased spouse has a small estate, an estate tax return must be filed nine months after the individual has died, with a six month filing extension available, in order for a spouse to take advantage of the portability option.

If you are married, it is a good idea to become familiar with what is required in order to take advantage of the portability option.

Read the Wall Street Journal here.

Definition of the Week: Fiduciary/Fiduciaries

2011-10-12T07:00:00.004-07:00

Fiduciary/Fiduciaries: A fiduciary is an entity or person who manages your affairs if you are incapacitated or deceased. The word fiduciary is a general term referring to agents, personal representatives, or trustees.

What About Steve Jobs's Estate Planning?

2011-10-11T07:00:00.005-07:00

Now that Steve Jobs has died there is speculation in the news regarding what place in technology ingenuity Apple, Inc. will play in the future. A less public issue of speculation is what will happen to Mr. Jobs's estate. Mr. Jobs during his life has been private regarding his philanthropy endeavors. Laurene Powell Jobs, Steve Jobs's widow, has very quietly been involving herself with education issues, women's issues, and other philanthropic causes. Two organizations founded by Ms. Powell Jobs are College Track and Emerson Collective. Both organizations strive to help individuals help themselves. Most likely, Ms. Powell Jobs will continue using Mr. Jobs's estate to further philanthropic causes important to both Ms. Powell Jobs and her deceased husband, Steve Jobs.

From our perspective as estate planners, the critical point is that Mr. Jobs seems to have done his estate planning right. We can say this because so little is being said (can be said) about it in the news. It seems everything has been done privately, confidentially, and competently. No news in estate planning is good news.

Here is an article with the Wall Street Journal touching on this issue.

Joke of the Week

2011-10-10T07:00:00.001-07:00

"Oh yes," said Mrs. Lowell-Cabot, proudly, "we can trace our ancestors back to-to-well, I don't know exactly who, but we've been descending for centuries."

Movie Review: Greedy

2011-10-07T07:00:00.002-07:00

The movie Greedy (1994, rated pg-13) is about an extremely wealthy uncle (Kirk Douglas) who knows his greedy relatives (Ed Begley, Jr., Phil Hartman, Michael J. Fox) want his money. He puts them through various tests including hiring a beautiful nurse from England. While watching the fun, it is of interest to see all the estate planning issues a family can actually go through.