Author: Michael

Don’t Forget Your Intangible Assets

December 27, 2010 /

A good friend of mine recently shared a story with me that had my gut wrenched when I read it.  She knows that I focus on helping families plan not just for that they have, but also for who they are – their values, insight, stories and experiences – and the story proves just how important that is.  This is planning for your Whole Family Wealth™.

Don’t underestimate who you are and what you mean to your family, friends and society as a whole.  We all have stories to share that can help and set examples for others.  Yet many great people I talk with feel that “leaving a legacy” is something that they’ll do much later in life, that they don’t have a “legacy” to leave right now.  Trust me when I say that is completely untrue!

And don’t just take it from me.  Read this article and watch the video.  You can view it by clicking here. I will let it speak for itself.  Please share your thoughts and comments after you read, watch and think about it.

Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned business succession and pet planning – and he is privileged to do so from a Christian perspective.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

5 Priceless Presents You Should Give Your Family

December 22, 2010 /

A recently read a great blog post by my colleague and Oregon estate planning lawyer, Candice Aiston. I am re-posting it hear for my readers, with Ms. Aiston’s permission.   Please take the time to read it, as it could make a HUGE difference in your families future.  Make it a point to give these important gifts in 2011.  You never know what could happen to you, and delaying these gifts could be disaster.

The end of the year is a time when I think a lot about the state of my life, family, and career.  I like to reflect on how the year went, whether goals were accomplished, what my goals are for the coming year, and how those goals match up with my values.  I try to think about what my overall purpose is and realign with that.  It is so easy to get caught up in the small details in life, that sometimes the big picture is lost.  I like to reassess each year and make sure I am always keeping my eye on what is important.

This year as I reflect, I find that my life, family, and career goals are really very interwined.  My family goal is to be a loving and responsible parent, and it turns out that my career goal is to help loving and responsible parents as well.  My life’s work happens to be helping loving parents to create estate plans that protect their families if something tragic happens.  Estate Planning is part of being a loving and responsible parent, but it is just one piece of that bigger goal.

If you are reading this, you probably feel similarly to the way that I do about parenting.  It is serious business, and it is our responsibility to provide the best care possible for our kids and to make sure they are protected and that they have every opportunity to succeed in life.  If we can toast to that, I want to share with you 5 Priceless Presents that you should give to your family.  If you have not given these to your family yet, there is no time like the New Year to get started.  Make it a resolution, a Responsible Parent’s Manifesto, if you want to call it that.

1. A Comprehensive Estate Plan
A Comprehensive Estate Plan is the first thing that any parent needs to get in place.  Why is this first?  Because you can have all of the things listed below, but put your family through hell trying to access it and pay all of the fees and taxes associated with your death or incapacity if something happens to you.  Without meeting with an attorney and discussing your particular situation, you have no idea what type of situation your family faces if something happens.  You need a plan that dictates the care of your kids (both short and long-term) and the handling of your assets in a way that saves your family the most time, money, and heartbreak. So, if you are a parent without an estate plan, this is your first step.  Call an estate planning attorney today.

2. Life Insurance
Life insurance is an essential part of most parents’ estate plans.  Most parents do not have enough in savings or assets to allow their families to live a similar lifestyle if a parent died.  Life insurance replaces lost income and it can be used to pay for childcare.  If you do not have life insurance, make it a priority in 2011 to get insured.  The longer you wait, the more difficult and expensive getting life insurance will be.  Keep in mind that life insurance makes your estate worth more, so you should consult your estate planning attorney before buying it.

3. An Emergency Savings Account
Every parent should have an emergency savings account.  This economy has taught us that little is certain in life.  It is not certain that you will have your job next month.  It is not certain that your business will be around next month.  It is not certain that your health will be good next month.  It is extremely important to plan for a situation where you may not have income for 6-12 months.  Otherwise, you could lose everything you have worked so hard to gain.  People who lose their jobs and do not have emergency savings often have to cash in retirement accounts with severe penalties and have their homes foreclosed upon.  It really can pay to sacrifice in the short-term to have that security long-term.

4. A Plan for Retirement
Retirement takes decades to plan for, and many parents do not know what they are doing when it comes to saving for it.  Seeing an experienced financial advisor is such a good idea when it comes to retirement.  Retirement is the biggest event for which you will ever plan.  An advisor can project what you should be putting aside based on your income, expenses, projected age of retirement, and rate of inflation.  They can also describe to you the various types of accounts and how each type can benefit you.  They all involve different tax rules and have different rules for distribution.  Your company’s retirement plan or pension may not be enough to support you during retirement.

5. A Plan for College
You would think that planning for college would be at the top of this list if you are a loving parent, right?  Wrong.  You first take the steps to protect your family from the worst situations, then you plan for the time when you can no longer work, and then you plan for college.  The reason for this is that if there is no college fund, your child can apply for loans and grants and get a job during college.  It is not ideal, but it is a heck of a lot more ideal than your grown child having to support you in your old age because you do not have the means to support yourself.  It is a lot more ideal than your child flunking out of high school because when dad died without life insurance, mom had to get two jobs to make ends meet and there was no one to make sure the child was doing what he was supposed to be doing.  But once you have taken care of the other things, providing a college education for your child can help your family for generations.  Without having to pay back student loans, your child can start saving, planning, and living prosperously a lot earlier on than you were able to do so.

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, “The 9 Common Planning Mistakes Parents Make,” please visit http://candiceaistonlaw.com/.

Critical Estate Planning Components From The Tax Bill

December 19, 2010 /

As I’m sure almost everyone has heard by now, the 2010 Tax Relief Act was passed by Congress and signed into law by President Obama.  To many it was surprising enough that they passed anything.  And to see what they actually passed is . . . well, almost unbelievable from an estate planning attorney’s perspective.  It’s definitely not something we saw coming.  If you know me, you are familiar with my favorite phrase when it comes to estate planning law – “never a dull moment” – and this is no exception.

Here is a brief summary of the estate planning components of the new law:

  • Originally there was no estate tax in 2010.  Now there is a retroactive estate tax on amounts over $5.0 million per individual which will be taxed at a 35%  rate.  However, estates of individuals passing away in 2010 will get to choose between the retroactive tax or the “no tax” and it’s carryover basis regime that I previously wrote about here and here.
  • The estate tax will be imposed on individual estates in excess of $5 million in 2011 and 2012 at a rate of 35%.
  • The gift tax exemption will be $5 million.  That’s right – MUCH higher than it has been or anyone anticipated it would be.  This will allow for some incredible, once-in-a-lifetime opportunities to create a legacy that will last for generations to come.
  • Portability is added.  This is a new concept to many people (and many attorneys too!).  For married couples, any unused portion of the estate tax exemption from the first spouse to die can be used as an added exemption when the second spouse passes.  Watch out though, as there are certain procedures that must be followed when the first spouse passes for this to work.
  • The generation skipping transfer tax exemption amount is increased to $5 million as well.  I see exciting planning opportunities combining this with the gift tax exemption amount.

The critical part to this is IT ONLY LASTS FOR TWO YEARS!  It seems that a lot of the popular media is glossing over that.  Look at how close Congress came to letting the law revert back to 2001 law this time (hint: we were less than 15 days away from it!).  Don’t count on them to keep fixing these “roll forwards” every time.  This should be a big red flag to get your estate plan reviewed by an attorney who specializes in estate planning.  And if you don’t have a plan, make sure you work with a lawyer who can provide a plan with the flexibility needed to handle these changes and who will keep the lines of communication open so your plan doesn’t go “stale.”

Quite honestly my head is spinning with added possibilities that families can achieve because of this legislation.  Stay tuned as I will be sharing the ideas as quick as I can come up with them!  And don’t forget to call us at 616-827-7596 to help your family have the added peace of mind of knowing YOUR goals and values, not the Government’s goals, will be passed on to your family if something happens to you.

Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned business succession and pet planning – and he is privileged to do so from a Christian perspective.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

Don’t Forget Your Pets When Estate Planning

December 12, 2010 /

You may have read the post I wrote about Michigan Pet Trusts.  If not, you can read it by clicking here. If you care about your pets, it is a must read.  Almost every pet owner I meet truly cares for their pets.  Yet very few (and I mean VERY few) have any planning in place to ensure that their beloved “child with a fur coat” will be cared for if something happens to them.  The alternative is not pretty – suffice it to say that what happens to a lot of animals whose caregivers didn’t plan is…well, less than ideal.  The statistics are staggering.

A good friend of mine recently directed me to this USA Today article about estate planning for pets.  Overall I think the article is good . . . if for no other reason than it raises awareness of the need for estate planning for pets.  I will not “rehash” the entire article here, so make sure to read it for yourself.  I will, however, provide my thoughts on some of points in the article:

  • Some may scoff at the Leona Helmsley story – how much she gave to care for her dog and to animal humane groups.  Keep in mind that each of our situations is unique . . . we each have different things that are important to us in differing ways.  From the stories I read, Ms. Helmsley’s children may have left something to be desired.  It could be that her dog, Trouble, provided her the companion and love she needed . . . even moreso than family.
  • Always keep in mind the source of information (even the author you’re reading right now!).  Ms. Hirschfeld’s Pet Protection Agreement provided by Legal Zoom is mentioned several times in the article.  I have no doubt that she knows what she is talking about . . . just keep in mind that it’s more than likely that she receives a “cut” from the  sale of Pet Protection Agreements.  Interestingly, I looked at the Legal Zoom page for the agreement and noted a quote by the President of The Humane Society of the United States regarding peace of mind from having the Pet Protection Agreement.  Much like estate planning for your human family, I believe much of the “peace of mind” provided by online solutions is a false peace of mind.  Why?  Because you don’t know what you don’t know.  I’m the same way.  Why do I not perform my own surgery?  Fix my own roof?  Install my own furnace?  Because I don’t know how and even with a lot of study there are still things I won’t know because they only come from experience.  Plan how you feel best, but my suggestion for true peace of mind is to work with an attorney who focuses on pet planning.  And yes, I realize that you should consider the source when reading that last statement too 🙂
  • The author points out that Ms. Helmsley likely could afford “pretty decent lawyers.”  That doesn’t mean, however, that those lawyers had any experience with estate planning for pets.  Keep that in mind when planning for your own pets.  If you have to ask about how to plan for your pets rather than having the lawyer include it in their questionnaire or bring it up in a meeting, that should be a sign to you.
  • I see a multi-pronged approach as the most likely to ensure your pets are cared for by who and in the way you want: a pet trust, pet information sheet, pet care instructions and having conversations regarding care with those you would choose to care for your pet while you can have the conversation.
  • Much like planning for your human family, estate planning for pets is a process, not a transaction.  Your life will change, your pets may change, the lives of the chosen caregivers will change and the laws will change.  If your planning doesn’t change with it, it may not work the way you wanted when it is needed most.

What do you think?  I always enjoy hearing from my blog readers.  And don’t forget to call us today at 616-827-7596 to help make sure your pets won’t be “left out in the cold” (or worse!) if something happens to you.

Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned business succession and pet planning – and he is privileged to do so from a Christian perspective.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

How Should I Sign Business Documents?

December 5, 2010 /

It depends on whether you are right handed or left handed.  Ok, not really.  This is a question I hear on a regular basis and an important one to make sure you do correctly.  Many Michigan business owners form their company as a Corporation or a Limited Liability Company (LLC).  They do this because they want to protect their personal assets from business liabilities, among many other reasons.  Many Grand Rapids business owners have read stories about lawsuits against a company and “piercing the veil” to access the owner’s personal assets.  That is definitely something to avoid.

A key component in avoiding “veil piercing” is to make sure you treat your business as just that . . . a business . . . separate and apart from you, the owner.  And how you sign documents on the company’s behalf can reinforce that notion.  I generally recommend the following: [Your Name], as [Your Title] of [Business Name].  For example, “John Doe, as Member of Masters of the Universe LLC.”

This clearly sets out that you are signing the document in your business capacity, not your personal capacity.  I also recommend always including the abbreviation for the type of business entity – LLC or Inc. – at the end so that you are putting the other parties to the document on notice that the business name is not just a sole proprietorship.

Sure, signing this way can take a little extra time and room on the paper, but it’s time (and room) well spent if it help reinforce your business entity’s existence and protect your personal assets from business liability.  If you need to make sure your Grand Rapids small business is working like a “well oiled” machine, call us at 616-827-7596 for a small business “tune up.”  Mention this blog post and we’ll waive the typical “tune up” fee ($950 value!).

The Downside to Leaving Your Estate to Heirs

November 28, 2010 /

I’m sure you’re wondering, “what are you talking about?  Isn’t it good to leave my estate to my heirs?”  Well . . . not necessarily.  As I mentioned in this earlier post, an “heir” is someone who inherits from you if you do not have a Will or a Trust.  That is, they inherit from you based on what Michigan’s “intestacy laws” say.

Before you assume that is “well and good,” consider these situations:

  • Second marriages – you may be surprised at the amount your children receive (or really what they do not receive).
  • Charitable gifts – if you want to benefit a charity, you better have a Will (or better yet, a Trust), because they are not “heirs.”
  • Special needs child – if receiving governmental assistance is important to their quality of life, too bad, because they are set to get their share outright as an “heir” when they turn 18.
  • A child (or spouse) who is a spendthrift or has substance abuse problems – in these cases one of the worst things you can do is give them a significant sum of money, yet they are entitled to it as an “heir” if you haven’t planned otherwise.

There are many more situations when being an “heir” may not be a good thing.  These are just some of the more common ones I’ve observed.

The great thing is that you can avoid these pitfalls by taking the time to setup an estate plan with a lawyer who focuses in estate planning.  These and many other undesired outcomes can be addressed through careful planning that centers on what is most important to you.  And it can help you leave the family legacy that is important to you.

If you find yourself in any of the situations listed above, call us at 616-827-7596 to schedule a Peace of Mind Planning Session to discover how you can “have your say.”  And if you mention this blog post, we’ll waive the planning session fee ($750 value!).

Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, and family owned business succession – and he is privileged to do so from a Christian perspective.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

Estate Planning for Young Professionals … What You Don’t Know CAN Hurt You

November 21, 2010 /

I recently read this post by my colleague and friend, Steve Worrall, an estate planning attorney in Georgia.  Mr. Worrall points out several reasons why an estate plan is of critical importance for young professionals.  I’m not going to re-print the list here, you’ll have to read his post.  And I believe the items he mentions are just as important to Grand Rapids Young Professionals . . . hey, that’s catchy . . . I belong to a group by that name!  I assure you that estate planning is critically important whether you belong to the group or not.

As a young professional myself, I have a strong passion for reaching out to fellow Grand Rapids young professionals to make sure they have a plan in place for themselves and their family if something happened to them.  I’m happy to say that the idea of estate planning is typically warmly received.  I think the biggest struggle for Grand Rapids young professionals and planning is that nobody has ever explained the importance of estate planning to them.  As a matter of fact, if I were not an estate planning lawyer I probably wouldn’t have heard about the importance of estate planning either!

And that is why I try to get the word out through speaking engagements and networking with my fellow young professionals.  Being one, and knowing many, let’s me know that young professionals do recognize the importance of estate planning…as long as someone will care enough to talk with them about it.  You’ve worked hard in college, your job, and possibly post-graduate work and you surely don’t want all you’ve worked for to be lost to court proceedings, costs and potentially not benefiting those for whom you cared the most.  And you don’t have to be married or have children to benefit from estate planning.

Finally, don’t forget to work with a grand rapids estate planning lawyer who plans for life by having systems and processes in place to make sure your estate plan is kept up to date.  With all the hustle and bustle of life as a young professional, there is no doubt that your life, your assets and the law is going to change throughout your life.  You should make sure that your estate plan changes to keep up and that your estate planning attorney doesn’t leave the responsibility for the changes all on your shoulders.

Don’t let Michigan law determine what will happen to what you’ve worked so hard for.  Call us at 616-827-7596 to find out what would happen if something happened to you and how YOU can have a say in how things are handled.

Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, and family owned business succession – and he is privileged to do so from a Christian perspective.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

Mental Capacity to Make a Michigan Will

November 18, 2010 /

I’ve had several people ask me over the years about what level of mental capacity is required for someone to create a valid Michigan Will.  The starting point is with the Estates and Protected Individuals Code – Michigan’s law governing Wills (among other things).

MCL 700.2501(2) lists the requirements for someone to legally have sufficient mental capacity to make a Michigan Will.  They are:

  1. The ability to understand that he or she is providing for the disposition of his or her property after death;
  2. The ability to know the nature and extent of his or her property;
  3. Knowing the natural objects of his or her bounty (e.g., who you would normally be expected to give things to, such as family); and
  4. The ability to understand in a reasonable manner the general nature and effect of signing his or her will.

Note: all requirements must be met.

So, how does this “play out” in real life?  Well, there just so happens to be a recent Michigan case that gives an example.  In the case (click here to view) someone challenged a Michigan Will because they felt the testator (creator of the will) lacked capacity when she signed it.  She had been diagnosed with dementia.  The court pointed out that there was no evidence that she was not able to comprehend the nature and extent of her property, recall the “natural objects of her bounty,” or determine and understand the disposition of her property that she wanted to make.  The court stated that “weakness of mind and forgetfulness are insufficient to invalidate a will if it appears that the mind of the testator was capable of attention and exertion when aroused and [she] was not imposed upon.”

If you have questions about a similar situation, call us at 616-827-7596.

Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, and family owned business succession – and he is privileged to do so from a Christian perspective.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

Life Is More Than Money: Leaving a Lasting Legacy

November 14, 2010 /

I’ve made a presentation to several different groups entitled “Life Is More Than Money: 5 Common Estate Planning Mistakes That Could Leave Your Family Without a Legacy.”  Why am I telling you that?  Because I recently read this NY Times article and it seems that more people are realizing the value of estate planning for their “intangible wealth.”  I’m happy to say I’ve been helping Grand Rapids area families plan for their “intangible wealth” for some time now through my focus on Whole Family Wealth Planning™.

The article points out the importance of considering and planning for the legacy you will leave for your family by thinking of the “intangible assets” you will pass on, such as your values, insights, stories and experiences.  I applaud the article’s author for realizing this important fact – when something happens to you, your “stuff” is left, but you are gone.  That may go without saying, but many families and, dare I say it, attorneys, don’t think about that.  That’s why I focus on helping families plan for who they are and what is important to them . . . not just what they have.

Remember, estate planning is not something you do for yourself.  It’s something that you do for those you love the most because they are the ones that will have to deal with the ease or burden of what you did or didn’t do planning-wise.  Estate planning really is an expression of your love for your family . . . one far greater than a new toy, going to the best college or having the nicest house.  You are planning for their future and future generations.

You’ll also notice that the author used a team approach to planning.  Absolutely . . . this is the best way to make sure you have all your “ducks in a row.”  A financial adviser, CPA and an estate planning attorney that focuses on Whole Family Wealth Planning™ are the keys to developing a lasting legacy.  Of course, the professionals need to have knowledge and experience in legacy planning, otherwise you end up with just a set of documents and nothing more.  Carefully consider this when you do estate planning.

And finally…DO IT!  Procrastination is the killer of legacies…don’t let your delay leave your family without the benefit of your life experiences and the guidance and direction you want for them.  Call us now at 616-827-7596 to schedule your Peace of Mind Planning Session (note the peace of mind the author got from planning).  Mention this blog post and we’ll waive the meeting fee ($750 value)!

Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, and family owned business succession – and he is privileged to do so from a Christian perspective.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

Who is a Michigan Heir

November 8, 2010 /

I’ve had several people ask me, “what is an heir?”  Well, it is better said, “who is an heir?”  Michigan law says that an “heir” is a person who is entitled to inherit according to Michigan law from someone who died without a will or trust (MCL 700.1104(n)).  “Person” is a loose term as it also includes the State of Michigan.  Doesn’t that make you feel all warm and fuzzy?  If you don’t have anyone who survives you and is entitled to your property according to Michigan law, the property goes to the state!

So why does this matter?  Well, one example is if you have charitable inclinations and would want a charity (or multiple charities) to receive something if you passed away.  Or, at the very least, receive something rather than having it go to the State.  Sorry, it’s not going to happen if you don’t have a will or trust because state law does not list charities as an “heir.”

Or, say you have several children, one of which is financially very well off and does not need to inherit anything from you (or doesn’t want to).  They are still an “heir” if you do not have a will or trust that says otherwise.  Or a relative who has a substance abuse or addiction problem.  Many people feel bad about “disinheriting” someone, and I understand that.  Even saying the word makes it sound mean.  But there are certain situations where it may be desirable, such as the previous examples.

The key here is that a Michigan “heir” really matters to only those folks who have not planned for their family’s protection and well-being if something happened to them.  Here’s the good part – you CAN  say who receives what!  You just have to take the time to meet with an estate planning attorney who take the time to help you put your goals and desires into action.  Sure there is a cost, but what is the alternative…having the State make that determination for you?  To many, that is a far more costly situation as it leaves what happens to your legacy up to the State, not you.

If you want to have your say in your legacy, call us now at 616-827-7596 to schedule your Peace of Mind Planning Session.  Mention this blog post and we’ll waive the planning session fee ($750 value).

Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, and family owned business succession – and he is privileged to do so from a Christian perspective.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

National Child Safety and Protection Month

October 31, 2010 /

Did you know that November is Child Safety and Protection Month?  No?  Honestly…I didn’t either.  I tend to think of the safety of our children as a minute-by-minute consideration not just something to think about one month out of the year.  And I’m sure many parents feel the same way.  It is nice that there is a month dedicated to raising awareness of such an important topic.  It may be cliche, but our children are the future.

If you peruse the website and periodicals for information on this topic you will find information on preventing childhood accidents, advice for childcare providers, ways to make your home safer for your children, and many more topics.  Whoa – something is missing!

I didn’t come across any articles on taking the critical steps to make sure your children are protected and provided for if something happened to you.  As a Grand Rapids estate planning lawyer,I’m sure you knew I would bring up estate planning.  I’m glad someone did!  Now maybe I’m just not a good “googler,” but I think the fact that I was unable to find a single article about the importance of Estate Planning in the context of this month says a lot about how most people view estate planning.  They likely think it is for “old” people who need to plan for their death.  Quite the contrary!

I firmly believe that estate planning is most important for Grand Rapids parents with minor children and that planning for life (yours and theirs) is the key to an estate plan that brings the added peace of mind we all desire.  Yet, as parents, we tend to think of “child protection” and “child safety” only in the physical sense – not getting physically hurt.  I have come to learn through conversations with people whose parents passed away when they were children, the emotional hurt of losing their parents is far worse . . . and worse still if they are thrown into “the court system” and a judge determines who cares for the children.

None of us are invincible . . . you only need to read the daily news to know that life happens.  So I encourage you, let this Child Safety and Protection Month be a “wake up” call to get an estate plan in place for your family and have the added peace of mind of knowing your children will be provided for and cared for if something happened to you.

Call our office at 616-827-7596 in the month of November to schedule a Peace of Mind Planning Session and I will waive the session fee ($750 value!).  Make sure to mention this blog post to take advantage of this special offer!

Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, and family owned business succession – and he is privileged to do so from a Christian perspective.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.

The Importance of Your Parents’ Estate Plan

October 28, 2010 /

The statistics are quite staggering: half of Americans do not have even the most basic estate planning documents (Forbes.com).  That means that only half of Americans actually have a say in what will happen if they pass away or become incapacitated…the other half are relying on their state’s one-size-fits-all law and the state court system.  Seriously?!  You want legislators and judges who don’t know you from “Joe” next door to be determining who gets what if you pass away or worse yet, who will make decisions on your behalf if you become incapacitated?

The most common reason in my experience is procrastination.  I can’t count how many times I’ve met with and talked with great people who say, “we’ve been thinking about it for a long time…we just kept putting it off.”  Well, here’s another thing to think about in addition to needing to do your own planning.  What planning, if any, have your parents done?  That’s right…do you know if your parents have an estate plan?  If so, do you know what it says and who they picked to carry out key rolls.

Your parent’s estate plan should be important to you for 2 reasons (and not the reasons you think): (1) you may likely be the one (or one of) who has to take care of their affairs if something happens to them, and (2) if something happens to you before them, their plan may control some of how your things are distributed.

Point #1: if people do have an estate plan in place, they typically pick relatives to carry out the duties of administering the Michigan estate (through Michigan probate or through Michigan –trust administration).  Guess what?  That could be you.  Do you know what your duties would be?  Do you know what your parents have done or have not done to ease the burden on you.  Think about it.  If something happens to your parents the last thing you want to think about is handling their financial affairs and administering their estate.  You’ve just lost folks who were very dear to you…what do you want to have on your shoulders in addition to the loss?

Point #2: I have had several great people I’ve met with who have named their parents (or in-laws) as the beneficiaries of their retirement accounts and/or their life insurance.  The reason: they didn’t want it to go through probate if they passed away and their children were under 18 (money paid to a minor child upon the parent’s passing must go through the probate court process).  BIG uh oh with that “planning technique.”  Why?  Because once that money is paid to the parents it is their money.  I don’t doubt that they are great people and would do whatever you requested, but there are a lot of things over which they have no control.  Do they have creditors?  What if they were in a car accident?  Because it is their money, it is open to all those risks (including divorce)!

And more importantly for the subject of this post, what does their estate plan say?  Most parents who don’t meet with a relationship-based Michigan estate planning attorney will name their children equally as the recipients of their estate when they die.  Do you see the uh-oh?  That means you and your siblings (if any) would get equal shares without any special provision for the resources you made for your children.  For example, if you have 2 siblings, that would mean that your children will only receive 1/3 of the insurance and/or retirement benefits you wanted them to receive.

See why your parents’ estate plan is so important?  I encourage you to talk with your parents about their planning (or lack of a plan!).  And if you or they have any questions, call us at (616) 827-7596.

Michael Lichterman is an estate planning attorney who helps families and business owners create a lasting legacy by planning for their Whole Family Wealth™.  This goes beyond merely planning for finances – it’s about who your are and what’s important to you.  He focuses on planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, and family owned business succession – and he is privileged to do so from a Christian perspective.  He takes the “counselor” part of attorney and counselor at law very seriously, and enjoys creating life long relationships with his clients – many of which have become great friends.