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Jul 22

What Is A Pour-Over Will?

A Last Will and Testament is a crucial component of every estate plan.

If you have a Living Trust-based estate plan, you are probably wondering if you also need a Last Will and Testament. Yes, you do!

The Pour-Over Will is designed to work in conjunction with your Living Trust.

The Pour-Over Will acts as a safety net for any property that you inadvertently fail to re-title in the name of your Living Trust before your death. It then “pours the property over” into your Living Trust. The Trustee of your Living Trust can then distribute the property to your chosen beneficiaries according to your instructions in your Living Trust.

To summarize, the Pour-Over Will works with your Living Trust, enabling it to transfer property more easily than a Last Will and Testament could transfer it alone.

Jul 21

Five Wishes

Five Wishes is an advance directive created by the non-profit organization Aging with Dignity.

The advance directive contains two legal documents, which are the Health Care/Medical Power of Attorney and the Living Will. However, the document also addresses matters of comfort care, spirituality, and final wishes.

According to the American Bar Association’s Commission on Law and Aging, Five Wishes currently meets the legal requirements for an advance directive in 42 states and the District of Columbia. In the remaining 8 states, (Alabama, Indiana, Kansas, New Hampshire, Ohio, Oregon, Texas, and Utah) a statutory form is required, and one must attach the state document if one wishes to use the Five Wishes document as a guide.

Here is an outline of the Five Wishes document:

Wish 1: The Person I Want to Make Care Decisions for Me When I Can’t
In this section, you create a medical / health care power of attorney. You choose a health care agent. This person makes medical decisions on your behalf if you are unable to speak for yourself.

Wish 2: The Kind of Medical Treatment I Want or Don’t Want
In this section, you create a Living Will. You define what life support treatment means to you, and when you would and would not want it.

Wish 3: How Comfortable I Want to Be
In this section, you address matters of comfort care. This includes the type of pain management you would like, personal grooming and bathing instructions, and whether you would like to know about options for hospice care.

Wish 4: How I Want People to Treat Me
In this section outlines personal matters, such as whether you would like to be at home, and whether you would like someone to pray at your bedside.

Wish 5: What I Want My Loved Ones to Know
In this section you discuss matters such as forgiveness, how you wish to be remembered, and final wishes regarding funeral or memorial plans.

If you would like to know more about Five Wishes, please see the website.

Jul 20

Prince’s Estate And The Importance of Tax Planning

The world was stunned when it learned that Prince never created an estate plan, or even a will, to distribute and protect his assets after his passing.

For someone who was apparently so anti-establishment, it seems unlikely that Prince would have wanted the U.S. government to receive a windfall. Yet that will be the likely result of his failure to do any estate planning.

Prince’s lack of planning could cost his estate up to half of its estimated $300 million worth.

If Prince had established an estate plan that incorporated common tax planning strategies, a much greater portion of his wealth and future income would have passed to his intended beneficiaries. Tax and estate planning strategies could have substantially lowered his estate’s tax bill, and even protected his future earnings.

For high net-worth individuals, such as Prince, it is never too early to discuss comprehensive tax and estate planning.

Reference: Prince Estate: The Importance Of Having A Will, by Gary Borofsky, Forbes Magazine, July 18, 2016.

Jul 19

The Colorado Uniform Trust Decanting Act

The Colorado Uniform Trust Decanting Act will go into effect on August 10, 2016.

Trust decanting is done for several reasons. It may be used to correct drafting errors, add special needs provisions, or to comply with changing tax laws. It may also be used to change trustee provisions or to alter powers of appointment.

Decanting allows a trustee to distribute the assets of one trust to a second trust. However, it can only be done under specific circumstances. The Act applies to irrevocable trusts, other than irrevocable trusts held solely for a charitable purpose.

The Act contains many restrictions on the power to decant, which are designed to protect the beneficiaries and avoid potential tax consequences. In addition, a trustee cannot decant a trust to benefit personally.

This legislation is large and complex. If you have questions about the effect of this law on your trust, please contact your estate planning attorney.

Reference: Colorado Uniform Trust Decanting Act, National Law Review, June 20, 2016.

Jul 18

How The Make-A-Wish Foundation Was Born

In the spring of 1980, 7-year-old Chris Greicius dreamed of becoming a highway patrol motorcycle officer like his heroes, Ponch and John from the television show, “CHiPS”. His dream was not likely to become a reality. Chris was being treated for leukemia he was only expected to live a few more days.

U.S. Customs Officer, Tommy Austin, befriended Chris and worked with officers at the Arizona Department of Public Safety to make Chris’s dream come true. One of the motorcycle officers who was asked to participate was Officer Frank Shankwitz.

Chris spent the day as a police officer, rode in a police helicopter, received a custom-tailored police uniform, and was sworn in as the first honorary Public Safety patrolman in state history. He died a few days later.

Officer Frank Shankwitz was so moved by the experience of granting the child’s wish that he was inspired to create the Make-A-Wish Foundation.

You can learn more about Frank Shankwitz in this video.

Do you have an idea for a foundation that could uplift others?

Jul 17

Face it, Embrace it, Defy it, and Conquer it!

This morning, Pastor Joel Osteen told the most amazing story. It was the story of Victoria Arlen.

Victoria was active and healthy until she was eleven years old, when she developed a pain in her side. Her doctors removed her appendix, but that didn’t help.

Victoria’s health continued to deteriorate. She lost 30 pounds in just three weeks. Her arms and legs stopped working. She lost the ability to speak, eat, and walk. Eventually she became unable to move at all, and slipped into a vegetative state.

Victoria was diagnosed with a rare autoimmune disorder that was causing pressure on her brain and spinal cord. Victoria’s doctors told her parents that she was unlikely to survive. If she did survive, they believed that she would live her life in a vegetative state.

Two years later, Victoria “woke up” and became aware of what was going on around her, although she remained unable to speak or move. Eventually she was able to open her eyes, and began to recover.

In 2010, four years after her diagnosis, Victoria returned to school. She was paralyzed from the waist down, but grateful for her recovery. She was told that she would never walk again.

In March 2016, Victoria defied the odds again, and took her first steps. She can now walk normally, and no longer needs a wheelchair or even crutches.

Today, at age 21, Victoria Arlen is one of ESPN’s youngest on-air personalities! She is also an actress, a model, and a motivational speaker!

You can learn more about Victoria Arlen on her website at VictoriaArlen.com

Keep Victoria’s story in mind as you prepare your Advance Medical Directives.