Tag: Estate Planning

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Where there’s no will, there’s no pay: 14 celebrities who died without a will

By Dawn Jorgenson

As the world still reels from the death of Aretha Franklin, it’s hard to believe she could have been sick for some time, had a special-needs son — along with three other children, not to mention her estate and other assets — and didn’t have a will at the time of her death.

Yet, surprisingly, she’s not the only famous person to die without a will.

And according to Forbes, a whopping 64 percent of Americans have no will. In a 2015 survey, some cited that they haven’t gotten around to it, while others said they just don’t feel it’s urgent.

What could be off-putting about creating a will? Perhaps facing the thought of your own death, the fact that it can be pricey, or that most people may not know where to start, making it an intimidating endeavor.

Still, with typically more funds than the average American, it’s hard to understand how a famous person could not have a will.

Here are 14 celebrities who died with no will:

Aretha Franklin

After battling advanced pancreatic cancer, Franklin died at the age of 76 in her Detroit home. According to her attorney, he had requested she create a trust time and again, but the Queen of Soul never got around to it. There hasn’t been a dollar figure released on the value of her assets, but her attorney said her lack of a will means it will soon become public in probate court. Her four sons have already filed a document listing themselves as interested parties, courthouse paperwork shows.

Prince

Despite being careful about his music distribution, Prince, whose fortune was estimated at $150 million to $300 million, had no will. Prince’s sister, and his only full sibling, said he had no surviving spouse, no children and no living parents, and asked for the appointment of a special administrator to his estate, the continuation of his business affairs and determination of heirs. Prince had five other living half-siblings.

Kurt Cobain

Nirvana’s frontman, whose estimated value has been in excess of $450 million, was found dead of an apparent suicide in April 1994. His wife, Courtney Love, and daughter would inherit his estate, but they met many legal battles over copyright and other issues, which were highlighted because of Cobain’s lack of planning.

Amy Winehouse

After dying from apparent alcohol poisoning at the age of 27, Winehouse’s parents wound up with her fortune of $4.66 million. Her ex-husband, Blake Fielder-Civil, did not receive anything.

Pablo Picasso

The artist had no will when he died at the age of 91 in 1973, despite having $4.5 million in cash, $1.3 million in gold, stocks and bonds, thousands of drawings, paintings and sculptures, five homes and more (his estate was valued at $250 million, or $770 million in today’s dollars). Because his relations were complicated, a fight over how his estate would be distributed went on for years and cost tens of millions of dollars. Everything was eventually divided between his widow, children and grandchildren.

Bob Marley

When he died at the age of 36 after battling cancer, Marley had no will. Because of Jamaican law, his wife, Rita, received only 10 percent of his fortune, while the rest of his estate was divided between his 11 children. They were all additionally awarded the entitlement to his name and likeness.

Howard Hughes

The billionaire entrepreneur had no will when he died at the age of 70. His $1.5 billion fortune (valued at $6.4 billion today) was eventually split between 22 cousins.

Barry White

The soulful singer, who died at 58 from a stroke related to kidney failure, had no will, despite his health problems. His ex-wives, girlfriends and children, in turn, were left to battle over his multimillion dollar estate.

Jimi Hendrix

At only 27 years old, he was found dead of an apparent overdose in 1970. His fortune was passed to his father, but when his father died, he left Hendrix’s sister, Jane, in charge of the estate. In turn, the guitarist’s siblings fought over licensing agreements related to his image. They were set to go to trial, but a settlement was reached before they could make it there.

Tupac

At the time of the 25-year-old rapper’s slaying, he was not married and had no children. With no will, his mother inherited his estate.

Steve McNair

The NFL quarterback was killed in a murder-suicide in 2009 and left behind a wife and four children. With no signed will at that time, much of McNair’s money has been tied up in litigation. McNair’s wife sued his mother and evicted her from a home her son had gifted her while he was still alive.

Abraham Lincoln

The 16th president of the United States, who was also a lawyer, was shot on April 14, 1865 and died the next day at the age of 56. His estate of $85,000 (which would be worth $1.2 million in today’s dollars) was eventually divided between his widow and two sons.

Sonny Bono

After dying in a skiing accident in 1998, the singer-turned-politician’s wife, Mary Bono, had to go through probate court in order to become the executor of his estate. Ultimately, the estate was divided between Sonny’s two children and Mary.

Martin Luther King Jr.

The civil rights leader was shot to death at the age of 39. Though he was only estimated to be worth $30,000 ($209,000 in today’s dollars), the heirs couldn’t agree on a best way to split his assets and were still fighting it out as of 2015.

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Some believe funeral preplanning brings death to their doorsteps

It’s quite the opposite

To help relieve their families, an increasing number of people are planning their own funerals, designating their funeral preferences, and sometimes paying for them in advance. They see funeral planning as an extension of will and estate planning.

Funeral Planning Tips

Thinking ahead can help you make informed and thoughtful decisions about funeral arrangements. It allows you to choose the specific items you want and need, and compare the prices offered by several funeral providers. It also spares your survivors the stress of making these decisions under the pressure of time and strong emotions. You can make arrangements directly with a funeral establishment.

An important consideration when planning a funeral pre-need is where the remains will be buried, entombed, or scattered. In the short time between the death and burial of a loved one, many family members find themselves rushing to buy a cemetery plot or grave — often without careful thought or a personal visit to the site. That’s why it’s in the family’s best interest to buy cemetery plots before you need them.

You may wish to make decisions about your arrangements in advance, but not pay for them in advance. Keep in mind that over time, prices may go up and businesses may close or change ownership. However, in some areas with increased competition, prices may go down over time. It’s a good idea to review and revise your decisions every few years, and to make sure your family is aware of your wishes.

Put your preferences in writing, give copies to family members and your attorney, and keep a copy in a handy place. Don’t designate your preferences in your will, because a will often is not found or read until after the funeral. And avoid putting the only copy of your preferences in a safe deposit box. That’s because your family may have to make arrangements on a weekend or holiday, before the box can be opened.

Prepaying

Millions of Americans have entered into contracts to arrange their funerals and prepay some or all of the expenses involved. Laws of individual states govern the prepayment of funeral goods and services; various states have laws to help ensure that these advance payments are available to pay for the funeral products and services when they’re needed. But protections vary widely from state to state, and some state laws offer little or no effective protection. Some state laws require the funeral home or cemetery to place a percentage of the prepayment in a state-regulated trust or to purchase a life insurance policy with the death benefits assigned to the funeral home or cemetery.

If you’re thinking about prepaying for funeral goods and services, it’s important to consider these issues before putting down any money:

  • What are you are paying for? Are you buying only merchandise, like a casket and vault, or are you purchasing funeral services as well?
  • What happens to the money you’ve prepaid? States have different requirements for handling funds paid for prearranged funeral services.
  • What happens to the interest income on money that is prepaid and put into a trust account?
  • Are you protected if the firm you dealt with goes out of business?
  • Can you cancel the contract and get a full refund if you change your mind?
  • What happens if you move to a different area or die while away from home? Some prepaid funeral plans can be transferred, but often at an added cost.

Be sure to tell your family about the plans you’ve made; let them know where the documents are filed. If your family isn’t aware that you’ve made plans, your wishes may not be carried out. And if family members don’t know that you’ve prepaid the funeral costs, they could end up paying for the same arrangements. You may wish to consult an attorney on the best way to ensure that your wishes are followed.

Funeral Terms and Contact Information

This article provides a glossary of terms you will encounter when planning a funeral, and offers a list of resources for more information.

Glossary of Funeral Terms

Alternative Container: An unfinished wood box or other non-metal receptacle without ornamentation, often made of fiberboard, pressed wood, or composition materials, and generally lower in cost than caskets.

Casket/Coffin: A box or chest for burying remains.

Cemetery Property: A grave, crypt, or niche.

Cemetery Services: Opening and closing graves, crypts or niches; setting grave liners and vaults; setting markers; and long-term maintenance of cemetery grounds and facilities.

Columbarium: A structure with niches (small spaces) for placing cremated remains in urns or other approved containers. It may be outdoors or part of a mausoleum.

Cremation: Exposing remains and the container encasing them to extreme heat and flame and processing the resulting bone fragments to a uniform size and consistency.

Crypt: A space in a mausoleum or other building to hold cremated or whole remains.

Disposition: The placement of cremated or whole remains in their final resting place.

Endowment Care Fund: Money collected from cemetery property purchasers and placed in trust for the maintenance and upkeep of the cemetery.

Entombment: Burial in a mausoleum.

Funeral Ceremony: A service commemorating the deceased, with the body present.

Funeral Services: Services provided by a funeral director and staff, which may include consulting with the family on funeral planning; transportation, shelter, refrigeration and embalming of remains; preparing and filing notices; obtaining authorizations and permits; and coordinating with the cemetery, crematory or other third parties.

Grave: A space in the ground in a cemetery for the burial of remains.

Grave Liner or Outer Container: A concrete cover that fits over a casket in a grave. Some liners cover tops and sides of the casket. Others, referred to as vaults, completely enclose the casket. Grave liners minimize ground settling.

Graveside Service: A service to commemorate the deceased held at the cemetery before burial.

Interment: Burial in the ground, inurnment or entombment.

Inurnment: The placing of cremated remains in an urn.

Mausoleum: A building in which remains are buried or entombed.

Memorial Service: A ceremony commemorating the deceased, without the body present.

Niche: A space in a columbarium, mausoleum or niche wall to hold an urn.

Urn: A container to hold cremated remains. It can be placed in a columbarium or mausoleum, or buried in the ground.

Vault: A grave liner that completely encloses a casket.

For More Information about Funerals, Funeral Providers, and Where to File a Complaint

Most states have a licensing board that regulates the funeral industry. You may contact the board in your state for information or help. If you want additional information about making funeral arrangements and the options available, you may want to contact interested business, professional and consumer groups. Some of the biggest are:

  • AARP
    AARP is a membership organization for people 50 years of age and older. Funeral-related information also is available in the Grief & Loss section.
  • Cremation Association of North America
    CANA is an association of crematories, cemeteries, and funeral homes that offer cremation.
  • Funeral Consumers Alliance
    FCA is a nonprofit educational organization that supports increased funeral consumer protection. Their website has free pamphlets on funeral planning, plus a directory of local volunteer funeral planning groups.
  • Funeral Ethics Organization
    FEO, an independent nonprofit educational organization, promotes ethical dealings in death- related transactions and provides mediation assistance to resolve consumer complaints.
  • Green Burial Council
    GBC, an independent, nonprofit that encourages environmentally sustainable death care practices as a means of acquiring, restoring, and stewarding natural areas, assists consumers in identifying “green” cemetery, funeral, and cremation services.
  • International Cemetery, Cremation and Funeral Association
    ICCFA is a nonprofit association of cemeteries, funeral homes, crematories, and monument retailers that offers informal mediation of consumer complaints through its Cemetery Consumer Service Council. Its website provides information and advice in its Consumer Resource Guide.
  • International Order of the Golden Rule
    OGR is an international association of about 1,300 independent funeral homes.
  • Jewish Funeral Directors of America
    JFDA is an international association of funeral homes serving the Jewish community.
  • National Funeral Directors Association
    NFDA is an educational and professional association of funeral directors, which provides consumer information and sponsors the NFDA Help Line, which is designed to help consumers resolve complaints about NFDA members.
  • National Funeral Directors and Morticians Association
    NFDMA is a national association primarily of African-American funeral providers.
  • Selected Independent Funeral Homes
    SIFH is an international association of funeral firms that have agreed to comply with its Code of Good Funeral Practices.

Resolving Problems

If you have a problem concerning funeral matters, it’s best to try to resolve it first with the funeral director. If you are dissatisfied with the funeral services you receive, the Funeral Consumers Alliance offers advice on how best to resolve a problem. In addition, the FEO, the NFDA Help Line, and the ICCFA Cemetery Consumer Service Council may be able to provide informal mediation of a complaint. You also can contact your state Attorney General’s office or local consumer protection agencies.

In addition, you can file a complaint with the FTC online or call 1-877-FTC-HELP (382-4357); TDD: 1-866-653-4261. Although the Commission cannot resolve individual problems for consumers, it can act against a company if it sees a pattern of possible law violations.

Complete Article ↪HERE↩!

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Every Estate Plan Should Include These Documents

By Evan Levine, ChFC

Approximately 64% of Americans don’t have a will. Are you one of them? If you pass away without a will, it means you have died “intestate.” When this occurs, the intestacy laws of the state will distribute your property at death. Dying without a will creates many hassles for your loved ones: A probate judge appoints your executor, you have no say in distributing your property, and a judge will decide who will raise your kids if they are minors, to name just a few.

The inflexible nature of intestacy rules will fail to account for special situations or unique circumstances. Serious problems can arise in situations with second marriages, and estates that pass by intestacy rules are more likely to become the subject of litigation.

Estate Documents Every Adult Should Have

Regardless of age, income or occupation, every adult should have the following estate planning documents: 

Will: A will is the heart and soul of your estate plan. It will transfer your assets, appoint a guardian for minor children and name an executor—the individual or institution that takes charge of your estate after you die and distributes your property per your instructions.

Durable Power of Attorney: This document appoints a trusted friend, family member or advisor as an agent to act on your behalf in a variety of financial and legal matters. (For related reading, see: Power of Attorney: When You Need One.)

Health Care Proxy: Sometimes referred to as a health care agent or health care power of attorney, this document authorizes someone to make medical decisions on your behalf. You also may want to consider obtaining a living will (also called an advance directive), which expresses your preferences about certain aspects of end-of-life care. These issues may be covered in the health care proxy or in a separate document.

How to Obtain These Documents

The best way to get these documents drafted is through an estate planning attorney who practices in your state. If you know of one, call them and arrange a meeting. Once they learn about your overall situation and objectives, they may offer recommendations that go beyond the basic documents recommended in this article. Nothing beats personalized advice and planning from a specialist who thoroughly understands your situation and what you want to accomplish. If you don’t know an estate attorney, try to get a referral from a friend, family member or colleague.

If you can’t or don’t want to meet with an estate attorney for whatever reason, you have online options for drafting these documents, which is certainly better than doing nothing. Three of the more popular online resources for drafting estate planning documents are: Quicken Willmaker, Rocket Lawyer and Legal Zoom.

There is a famous expression: “You can prevent what you can foresee.” When you foresee the problems of dying intestate, you can prevent such problems by drafting the estate planning documents covered in this article while you are alive and well. If you’re one of the 64% of Americans without a will, what are you waiting for? The future is uncertain, so get started today!

Complete Article ↪HERE↩!

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Facing finality: it’s important to plan for your final days

A recent survey reveals that seniors and their adult children often do not take the necessary steps to plan for their final years of life.

By Cory Fisher

[D]espite the fact that most seniors have very specific ideas regarding how things should be handled when it comes to their care at the end of life, a surprising number have not shared this information with their offspring.

Too often seniors and adult children are eager to avoid the topic and therefore do not take the steps necessary to plan for the final years of life — including getting financial affairs in order and creating plans for care when a senior’s health inevitably begins to decline.

A new survey by Home Instead, Inc. found that while 73 percent of seniors have a written will, only 13 percent have actually made arrangements for long-term care. Additionally, 79 percent of seniors are more comfortable planning for their funerals than planning for when they need full-time care or hospice.

New research reveals it’s the children who feel the most awkward about broaching the subject of a parent’s final wishes. Even as parents approach their final years, adult children still find it hard to accept their parents’ mortality and believe the topic might be upsetting to parents or grandparents.

Yet once the subject has been broached, a 2017 survey of 505 seniors age 75 and over, and 510 adults between the ages of 45 and 69 revealed something quite different. A whopping 88 percent of seniors said discussing plans for their final years made them feel closer to their adult children, and 97 percent of adults who helped with their parents’ planning said it “gave them peace of mind that things would go okay.”

Those end-of-life fears that lead to avoidance only delay the inevitable. In most cases, adult children will be monitoring their parents’ care and the more information they have, the better.

Research, as well as Home Instead Senior Care experts say there are ways to combat those fears. Talk it out, don’t wait for a crisis, put a plan in place, consult experts on end-of-life issues and follow the “40-70 Rule,” which means that if you are at least 40, or your parents are at least 70, it’s time to start about certain senior topics.

Some of the most common fears experienced by seniors, according to research compiled by Home Instead, Inc., include:

  • Fear No. 1: “I hate the thought of having feeding tubes and ventilators keeping me alive.”

What you can do about it: Consider establishing a living will. Living wills detail an individual’s treatment preferences in the event he or she is unable to make those decisions. Many lawyers will prepare a living will as part of an estate planning package.

  • Fear No. 2: “I’m afraid I will end up in a nursing home, and I don’t want to die in a hospital or institution.”

What you can do about it: There are many options for end of life care outside of nursing homes and hospitals. Adult children can help their parents research home care options so the entire family is prepared when the time comes.

  • Fear No. 3: “What if I get dementia and can no longer make my own decisions?”

What you can do about it: It’s wise to have seniors designate a trusted person with power of attorney who will act on their behalf in the event that they are no longer able to advocate for themselves. This will give them peace of mind that their care wishes will be met regardless of their mental acuity.

For adult children, experts suggest the best way to address the end-of-life fears is to communicate clearly with parents about their wishes way in advance. Record specific discussions by taking notes, which could be helpful when making decisions in the future.

For those who feel a great deal of anxiety surrounding this topic, Home Instead offers free resources to encourage seniors and their adult children to talk together about important life plans, which can include end-of-life care, finances, insurance and funeral planning.

A novel component of the free resources offered includes a music generated feature entitled, “Compose Your Life Song.” The light-hearted online exercise, which can be found at http://www.caregiverstress.com/end-of-life-planning/compose-life-song/my-song/, can help families broach difficult subjects more easily.

After completing the activity, seniors are presented with their own customized “song” and accompanying resources that will help them reflect on their personal preparedness during their final years.

The song is a great way to gracefully transition into more serious topics, said Buck Shaw, owner of the Home Instead Senior Care office serving Sacramento, Nevada, Placer and El Dorado counties.

“It’s fun — I’ve done it myself,” he said. “It’s a very basic questionnaire that is a nice blend of topics. It’s so important to talk about these things — I can’t tell you how often I’ve seen families have disagreements when plans aren’t in place. One part of the family thinks grandpa wants one thing, while the other side thinks the opposite.

“It creates an awkward division of the family. I’ve even seen very educated people — doctors and teachers — arguing with relatives who are trying to keep grandpa alive when he was good to go. This can cause rifts in the family that are hard to repair.”

Participants who go online to create their own song respond “yes” or “no” to thought-provoking statements, such as, “I have checked off an item on my bucket list in the past year,” “I frequently visit with people whose company I enjoy,” “I have talked to my family about my end-of-life wishes” and “I have established a will and advanced directives.” This can open the door to deeper, more constructive conversations, said Shaw.

“About 77 percent of adult children think their parents have plans in place, while only 50 percent do,” he said. “In the long run, if we become advocates for seniors, we all win in the end. It’s all about raising awareness and doing the right thing.”

Complete Article ↪HERE↩!

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Dying Young and the Psychology of Leaving a Legacy

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[O]ften the biggest existential distress that we carry is the idea that no-one will remember us when we are gone—initially we know that our friends and family will hold who we are, but after a generation, these people are likely gone too. At the end of life, the pressure to leave an unquestionably relevant legacy can be crippling for people, particularly for young people. When coupled with the limited energy that people have when they are unwell, the very nature of what people expect to achieve in the world shrinks, and the really important pieces come into focus.

When time is seen to be limited, every moment can take on a weight that has never before been experienced. Some of these expectations come from within and some externally, but regardless of their origin they can be paralyzing for the young person facing their mortality, particularly when unwell. Culturally, there are multiple references as to what ‘dying young’ is meant to mean and most refer to extraordinary and often unobtainable expectations. For instance, members of the ‘27 club’ (celebrities who die on or before their 27th birthday) and notable cancer-related concepts around ‘bucket lists’ and works of fiction (e.g., The Fault in Our Stars). Most young people, particularly those who are dying, do not have the capacity or the options to engage in an extraordinary feat, they can become overwhelmed and paralyzed by what they are ‘meant to be doing’.

Often, as is the case with many things in life, simple and small are the gestures and moments which are the most meaningful, with huge projects and adventures feeling too overwhelming and out of the grasp of someone with limited energy and resources. As such, the fantasy of what something may have looked and felt like, had they have been well, is a much more satisfying space for them to sit with. Similarly, relationships become much more meaningful, as do the simple things that are taken away through the treatment process, like being able to sit in the sun or go to the pub with a friend.

Young patients can be bombarded with well-intentioned suggestions about what they ‘need’ to do, including making future legacy-based activities, such as leaving cards for each of their younger sibling’s birthdays, video journals of their death, or chronicling how they feel about all the people in their world. Although these are good ideas, they are emotionally and physically difficult to manage with limited resources. Patients need to be feeling very resilient and well before attempting any of these things with most being abandoned due to the confronting nature of conceptualizing the world without them present in it. It is a difficult ask for anyone to be able to take the relatively abstract idea of the world continuing following your own death; this does not change for young people and, in some ways, it is even more challenging due to their pervasive sense of self, even in the face of very real threats to their mortality.

The way that young people respond to being presented with a very limited life expectancy can vary tremendously. Some may stick their head firmly in the sand and refuse to discuss or conceptualize anything about what may happen in the lead-up to their death, or following. Others will organize everything about the end of their lives, including where they want to die, how alert they want to be, as well as what will happen following their death—such as where their belongings go and how they want to be remembered. For most people in this situation, in an existential sense, almost everything is out of control, the disease will do what it does, the pain is what it is, and they are an observer to the things happening in their bodies. The things that people can control is what they talk about, how much they talk about it, and who they talk about it too.

Just because death, dying, and legacy are not being talked about, does not mean that it is not in the consciousness and thoughts of the person pondering their own end. Instead, it may be that they have done as much thinking and talking about it as they need to do; it is often these patients that have very well-considered plans about what they want to happen as they deteriorate and the decisions that must be made about their care.

Complete Article ↪HERE↩!

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How to Prepare, Just in Case You Die Young

Nobody wants to imagine it. But you can disaster-proof your affairs with this checklist.

Insurance, wills, the POA (power of attorney)—they all matter in making things more manageable for survivors.

By Chana R. Schoenberger

[F]ew estate plans consider the possibility of an early death. That is a potentially disastrous mistake, experts say.

By the time you’re in your 40s, you likely know someone, or know of someone, who has died young. That is why it is important for people to draw up plans as soon as possible, including accounting for what will happen should death occur in middle age, with children still at home.

We spoke with estate-planning lawyers to ask what end-of-life documents and estate plans a 30- or 40-something would need to assemble (aside from tax-planning help, for which an accountant or tax lawyer should be enlisted). All recommended getting started right away with this checklist:

INSURANCE

Life insurance can be expensive, but it ensures that if a spouse should die young, his or her partner can stop working or downshift careers to take care of the children. People often buy life insurance for themselves when their children are born, so the surviving spouse won’t have to worry about having money for tuition or the costs of raising children as a single parent.

“It’s best if you can buy guaranteed renewable term insurance when you’re still insurable and have no underwriting risks, while you’re still relatively young and before you have any diagnoses,” says Joe McDonald, an estate-planning lawyer at McDonald & Kanyuk in Concord, N.H.

It’s also advisable to buy long-term-care insurance, though it is becoming more expensive as policyholders live longer. Many employers also offer disability insurance to replace a certain percentage of salary if the employee becomes incapacitated, says Joshua Kaplan, an estate-planning lawyer at the law firm Dechert in New York.

WILL

Everyone needs a will. Without one, depending on the state of residence, it could take weeks or months for an estate to make its way through probate court until a judge appoints an executor to wind down the deceased’s financial affairs. During that time, heirs may not be able to access the money left to them or even write checks to pay their bills.

Often state rules say that every person named in a will as the recipient of property needs to receive written notice that the will is in probate.

“It’s often simpler to leave everything to one person or a class of person, like your children, and then have them distribute,” says Mr. Kaplan. His grandmother did this, leaving everything equally to his aunt and father, with a letter explaining which relatives should also get certain items.

Once the will has been made and signed properly, where should it be kept? Somewhere safe, where the family can find it, such as with a lawyer. But be sure to tell someone in the family where it is.

“Don’t leave it in your safe-deposit box unless someone is the second signer, or you won’t be able to get to it,” says Sharon Bilar, an estate lawyer who has a practice in New York.

BENEFICIARIES

When you set up a bank account or any financial account, you’re typically asked to name a beneficiary to inherit it if you die. Such an account will pass directly to that person without going through probate, so make sure your beneficiary designations are up-to-date. You may have designated your siblings when you started working and set up your 401(k), for instance, but now you’re married and want to designate your spouse.

You also need a secondary beneficiary, in case something happens to your first choice (suppose, for example, that you and your spouse are in a car crash together). A trust can be a beneficiary as well. If there isn’t a space on account-opening forms for a secondary beneficiary, call the financial institution and request to add this person.

Generally, your children will be your secondary beneficiaries, after your spouse. Be careful of designating as secondary beneficiary an adult whom you would like to take care of your children, Ms. Bilar says.

“If you make anyone the beneficiary who’s not your child, that money legally belongs to the beneficiary, and you cannot force that person to spend the money on your child,” she says.

POWERS OF ATTORNEY and PROXIES

“If you’re worried about passing suddenly or becoming suddenly incapacitated, the legal documents you should have are some sort of health-care advance directive and a living will,” Mr. Kaplan says. A health-care proxy appoints one person, older than age 18, to act on your behalf when making medical decisions. If you don’t have this document signed and something happens to you, your spouse will have the right to make these decisions for you, followed by your adult children and your parents. Make sure to designate a first- and second-choice person to be your proxy, Mr. Kaplan says.

You’ll also want to sign a living will, which lays out your intentions for end-of-life care, such as when to withhold treatment if doctors determine you’re not going to recover, and whether you wish to be an organ donor. This is important if you are in an accident or otherwise become incapacitated. Because wishes often are driven by religious and other personal moral concerns, it is important for couples to discuss their own preferences, Mr. Kaplan says.

GUARDIANSHIP

When there are children under 18, the most important step in estate planning is to decide who should raise them if both spouses are gone. This preference goes into your will, where a judge will almost always honor it when deciding whom to appoint as guardian. If you don’t have this designation in writing, you’re leaving it up to the court to decide who will take care of your children. “It’s best if spouses both name the same people in the same order” when they choose a guardian for minor children, Mr. Kaplan says.

The guardian you select for your child doesn’t have to be the trustee of any trust you set up for your child—although it is easier if they agree on how to spend the money to benefit the child.

“Some people want the trustee to put the brakes on the guardian spending money for the child, to act as a check and balance,” says Mindy Stern, an estate lawyer at Schwartz Sladkus Reich Greenberg Atlas in New York.

Every additional piece of information survivors have about the deceased’s affairs can make the hours and days after a person dies easier. Survivors should have access to a file that contains insurance information; a list of all your bank and financial-institution accounts, “529” college-savings accounts and retirement accounts, with beneficiary information; a list of all your credit cards, as well as any household expenses that are set on auto-pay; and details on where to find the deed to the house and the cemetery plot, plus the key to the safe-deposit box.

Also keep a list of online accounts and their passwords, as well as information on airline frequent-flier miles, and the credentials to any cryptocurrency wallets you hold, Ms. Bilar says.

Complete Article ↪HERE↩!

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Keeping the Peace While Settling a Family Estate

Yes, you can settle a family estate without fighting. Here’s how.

 

[I]f a family member has passed away and his or her will or trust is in the midst of being settled, emotions and tensions within your clan may be high. Relatives are grieving, but at the same time, decisions regarding the fate of the estate must be made. 

Siblings may squabble over their “fair share” of the estate, a surviving spouse may face resistance from the deceased’s children from an earlier marriage, estranged family members may come out of the woodwork, and more. It may seem unlikely to maintain family harmony during such a challenging time.

Fortunately, a few key interpersonal tactics, as well as some practical solutions, can help keep arguments to a minimum, says Susan Lill, Senior Regional Fiduciary Manager with Wells Fargo Wealth Management. “Managing conflict generally boils down to good communication among family members, and perhaps some smart mediation-type skills,” she says. 

“A sense of transparency can help allay concerns for beneficiaries. Many misunderstandings arise when family members don’t understand the timeframes for settling an estate, or feel that they have not been kept in the loop,” she says. 

The following are a few of the most common estate-settlement conflicts and some potential solutions to bring harmony to all those involved.

1. Squabbling over personal items
“You’d be amazed at how often siblings are fine about splitting millions of dollars in stock shares, but practically get into fist fights about one family vase,” says Lill. Because dividing personal property is often the most difficult part of settling an estate, Wells Fargo Wealth Management has specialized tangible property experts. They can help families when the bank serves as executor, trustee, or agent for the executor.

Peacekeeping tactics: It may feel a bit extreme, but Lill suggests having the personal representative/trustee change the locks on family and vacation homes while the estate is being settled. “Tell family members you’re just trying to make sure no one removes favorite items before anyone else, in an effort to avoid major arguments,” she says.

Next, decide on a reasonable way for family members to split items not clearly delineated in the will or trust — from vehicles to pocketbooks, suggests Lill. One option: Have family members write down 10 items from the estate they would most like. If someone wants an item that no one else lists, it’s theirs. 

For overlapping items — and any other physical items left in the estate — consider taking a round-robin approach, allowing family members to take turns selecting items. Depending on the will/trust language, or the decision of the personal representative, McDermott says you could deduct the value of tangible items from each family members’ share of the estate. That way, no one feels they’ve gotten less than “their share.”

2. Impatient beneficiaries
Maybe you have a cousin who is tight on money and wants his inheritance well before the estate can be settled. Or perhaps two siblings inherit a vacation home; one wants to sell it immediately even if the market isn’t great, while the other wants to wait and sell later at a potentially higher price.

Peacekeeping tactics: A modest “advance on an inheritance” can help calm antsy relatives. “Keep in mind that the estate account will need to cover expected taxes, medical bills, and other fees, so leave enough in the account to cover that — and be sure to document the advance as part of paying out the estate,” says Lill.

3. Unequal distribution of assets
One beneficiary might be left a smaller share of the estate for a variety of reasons. For instance, maybe one adult child is financially successful and the parents didn’t think they needed as much help. 

Peacekeeping tactics: “In some situations, it’s helpful if benefactors talk to family members while they (benefactors) are still alive or leave a side letter with their will or trust that explains their reasons for treating beneficiaries unequally,” says McDermott. If that wasn’t done, consider bringing in a trust professional — either formally, as a co-fiduciary if the estate allows it, or informally, as a family advisor. This person may be able to objectively explain and help manage the disparity, rather than pitting family members against each other.

Overall, remember that settling a family estate can be emotionally challenging. A reasonable goal is to get through the process without unnecessarily damaging relationships — and without incurring a lot of expenses settling disagreements.

“Give family members a little extra grace and understanding during this process, since everyone grieves differently,” Lill suggests. Also, when an estate settlement proves particularly challenging for a family, Lill suggests bringing in professionals to take on settlement tasks and help resolve disputes. “That can be a great way to preserve family harmony.”

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