Category: Estate Planning

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.

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.

Critical Importance of Estate Planning for a Michigan Special Needs Child

October 24, 2010 /

I’ve touched on the subject before in a previous post and in my weekly client e-newsletter.  A presentation given to our Grandville, Michigan Rotary group tugged at my heart and renewed within me the passion to help spread the word about the vital importance of proper estate planning to families with children who have special needs.  Some of the great folks behind Benjamin’s Hope spoke to us about the struggles and joys of having a child with special needs (specifically autism in this case) and the vision they have for a unique location where children can reach their full potential.

I’m not going to pretend that I know what it is like to be a parent of a special needs child.  However, I have clients, friends and colleagues who have children with special needs and it has taught me this – they are children first and foremost.  They light up their parents lives and bring joy to those whose lives they touch.  And yes, there are added stresses and struggles.  The great thing about West Michigan is that there are numerous resources available to parents and their special needs children.  And although they may not qualify for them now, due to the parents’ income or other factors, there are also financial resources available through government programs and private programs.

As parents, we love our children more than anything in the world.  So why wouldn’t we want them to receive every benefit available to them?  Yet many parents put their children at risk of not receiving these benefits because they don’t spend the time or money to put a proper estate plan in place (or they don’t know what options are available).  And what if something happened to the parents? It’s a critical consideration for all parents and even moreso for the parents of a special needs child.  Who would care for your child?  Do they know how to care for a child with special needs?  Would a care manager be important?  Have you provided for one and given direction on how he or she should be involved?  Have you provided financial resources through life insurance or investments so your child can enjoy the life you want them to have?  Have you made sure to protect whatever benefits they may be entitled to as they get older or are they at risk because of the planning you’ve done (or lack of planning)?

As an attorney who focuses in estate planning, I make it a point to keep up on the unique planning opportunities available to parents with special needs children.  Please, please, please make sure to put a comprehensive plan in place.  There’s no doubt you care very deeply about your child(ren) – show it by planning for their future.  And make sure whatever attorney you work with has specific training, knowledge and experience planning for children with special needs.  We can help if you call (616) 827-7596 – mention this blog post and we will waive the fee for your Peace of Mind Planning Session ($550 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.

A Week Dedicated to Estate Planning

October 17, 2010 /

Did you know that this week is Estate Planning Awareness week in Michigan and across the nation?  Well, it is.  And you can read the Michigan proclamation by clicking here. Interestingly enough, Governor Granholm left one important estate planning document out of her proclamation…the durable power of attorney.  Don’t forget that one!

Estate Planning is one of the most overlooked areas of personal financial management.  It is estimated that over 120 million Americans do not have up-to-date estate plans to protect their families in the event of sickness, accidents, or untimely death (yikes!).  This costs the working classes and the more affluent wasted dollars and hours of hardship each year that can be greatly minimized with action and advanced planning.

Th reasons for a week dedicated to estate planning awareness are many and varied.  Some of the reasons given in the legislation that put the week in place are:

  • Estate planning can greatly assist Americans in preserving assets built over a lifetime for the benefit of their family, heirs, or charities;
  • Estate planning encourages timely decisions about the method of holding title to certain assets, the designation of beneficiaries, and the possible transfer of assets during life;
  • Many Americans are unaware that a lack of estate planning and “financial illiteracy” may cause their assets to be disposed of to unintended people by default through the complex process of probate;
  • Careful planning can prevent family members or other beneficiaries from being subjected to complex legal and administrative processes requiring significant expenditure of time, and greatly reduce confusion or even animosity among family members or other heirs upon the death of a loved one

And parents with minor children must not forget that estate planning is the way to make sure you’ve legally documented who you want to care for your children if you pass away or are incapacitated, so that they don’t end up in the arms of strangers or Child Protective Services!

If you haven’t put an plan in place for your family (young, older or in between), why not?  I encourage you to show your family how much your care about them by putting a plan in place before it’s too late.  If you don’t, the State of Michigan has a “one size fits all” plan for you.

And if you have put an estate plan in place for your family, when was it last updated?  Your life, the law and what you have are constantly changing . . . your plan needs to change along with it.  What happens if you don’t?  It’s difficult to say until something happens.  However, there is a good chance it will fail to accomplish what you wanted if it isn’t kept updated, and once something happens, it’s too late!

Consider talking with your family, friends and others you care about to share with them the importance of planning and keeping your plan updated.  National Estate Planning Week is a great way to start talking about the subject.  If you, your family or friends have any questions, call us at 616-827-7596 or contact us here.

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 Shocking Truth About Michigan Living Wills

October 13, 2010 /

The first shocking truth is this: a Living Will is not a Will at all.  A Will is a document that, when approved by the probate court, determines how and to whom your “stuff” is distributed to when you pass away.  A Living Will is a document that instructs physicians and others to withhold or withdraw life-sustaining treatment when the patient’s death is certain.  It is called a “living” will simply because the declaration is made by a person when he or she is still alive and able to make medical decisions.

The second, and bigger, shocking truth is this: Living Wills have no explicit legal support in Michigan.  That’s right, a Living Will is not a “legal document” in Michigan and is not required to be followed.  Unlike many states, Michigan has no legislation and there are no cases (that I can find) specifically authorizing living wills or requiring that they be followed.  Surprised?  Quite honestly, I was too when I first found out.

So what can you do if you want to express your wishes as to end-of-life decisions?  Michigan does have a Durable Power of Attorney and Patient Advocate Statute that allows you to designate who you want making healthcare decisions if you are unable to participate in your healthcare decisions.  I suggest including living will-like provisions in your patient advocate designation as the surest way to have them recognized.  If you absolutely want a document titled “living will,” then make sure to have a patient advocate designation as well and explicitly incorporate the living will by reference in your patient advocate designation.

Choosing someone to make medical decisions on your behalf when you are unable is one of the most important decisions you can make.  Because of how important this decision is, why wouldn’t you discuss your wishes and options with an attorney who specializes in estate planning?  Take the step of turning your wishes into directives by calling us at 616-827-7596 or contacting us here.

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.