Tag: wyoming michigan wills

Michigan Celebrity Dies Without An Estate Plan

February 12, 2012 /

If you are a sportsman who lived in Michigan over the past 30 years or so, the name Fred Trost may sound familiar to you.  Fred Trost was a celebrity among Michigan outdoorsmen, hosting “Michigan Outdoors” and “Practical Sportsman” on PBS.  I remember growing up watching his show, having an affinity to it over the others because he was from right here in Michigan.  Sadly, Mr. Trost passed away unexpectedly in 2007.

And to add to the shock, he died without an estate plan.  This caused no small problem in his family, with the in-fighting recently coming to an end with his wife winning a $195,000 lawsuit against his son (not her son).  You can read about it by clicking here.  Although we’ll never know, it is quite possible that much of the conflict and hurt could have been avoided with a caring and comprehensive estate plan.

You may say, “c’mon Mike, how could an estate plan have helped in this situation?  This was a matter of contract between his wife and his son.”  Well, you may be right.  But as a Grand Rapids, Mi wills and trusts attorney I’ve seen situations that were not too far off from this one that did not come to this level of conflict directly as a result of a caring and comprehensive estate plan.  Why?  Because the estate plan covered all the contingencies.  For example, in this case, Mr. Trost could have used an estate plan to say what would happen if he passed away before he received his anticipated inheritance and what would happen if his son received it as a result of Mr. Trost’s premature death (read the article to see how that caused a problem).  Or, he could have provided a way to “equalize his estate,” by using life insurance to make the monetary amounts more “fair.”  

One interesting item that was not mentioned in the article is what intrinsic value the show tapes had.  Sure, maybe they are financially valuable if they can be replayed, but I believe their bigger value to Trost’s wife is a way to remember the husband that she loved.  Remember, his “stuff” is still here, but he is gone.  When we lose someone for whom we care deeply, we usually look for something that reminds us of them.  It could be that the show tapes are that physical way for his wife to remember him.  Something of a family legacy.

Ultimately, we’ll never know what could have happened and how Mr. Trost’s family could have got along, because the fact is, he didn’t invest the time or money to do the planning that may have avoided it.  I encourage you to not make the same mistake.  Call us at 616-827-7596 to schedule a Peace of Mind Planning Session to help make sure your family is cared for and kept together in the most loving way possible.

Michael Lichterman is an estate planning and business 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 estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  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.

Using Trust Protectors to Maximize Estate Plan Flexibility

January 29, 2012 /

I’m the type of person who genuinely believes anything can be done.  And as a Grand Rapids, MI estate planning attorney I bring that same attitude to helping craft caring estate plans for wonderful West Michigan families.  How?  Flexibility.  That’s right – not the standard form document that seems to try and wedge your family into whatever box is the “standard,” but rather a plan that let’s you share your goals, aspirations, hopes, values, experiences and stories, and makes it a reality.  One of the biggest “wishes” is that a plan will be flexible enough to handle changed circumstances throughout life.  One incredibly powerful tool used to accomplish this is a trust protector.

Trust protectors (aka Trust Advisors) have long been used in British Commonwealth countries, originating with offshore asset protection trusts. With these trusts, their role was limited mostly to overseeing the foreign trustee and to make sure the trust maker’s intent was fulfilled.

Today, trust protectors are increasingly being used with trusts that are located here in Michigan. And, while their main job is still to oversee the trustee and make sure your intentions are followed after unforeseen changes in the law and other matters, they can be given additional duties that will provide you and your beneficiaries with added flexibility, security and peace of mind.

What is a Trust Protector?
A trust protector is someone you name in your trust agreement to oversee your trustee and make sure your trust carries on in the way you intended. This should be a trusted friend or advisor, someone who knows and understands your motives, family values and desires when you created your trust. In the case of a trust that will last many years, like a multi-generational trust, a trust protector is often an institution rather than a specific person.

A trust protector can begin to act immediately (for example, if your trust is irrevocable), or can take an active role only under certain circumstances (for example, at your incapacity or death). Think of your trust protector as your substitute, someone who can speak for you if there is uncertainty in interpreting your trust’s instructions, or the law changes and that change affects your trust. Your trust protector also can provide guidance for the trustee and protect your beneficiaries from a trustee that is not meeting its responsibilities, is overreaching, or is unresponsive.

How Much Power Should You Give Your Trust Protector?
The trust protector’s duties and powers are defined in the trust document, and can range from extremely limited to extremely broad. How much power you give your trust protector is completely up to you. Traditionally, the trust protector’s role has been a defensive one: to ensure that the trustee carries out the trustmaker’s wishes and to protect the beneficiaries from an under-performing or over-reaching trustee. But if you give your trust protector more power, the role can become a proactive one, allowing your trust protector to act before wrongs occur.

Some of the duties and powers you can give your trust protector include:

Oversee, Remove and Replace the Trustee
Your trust protector can oversee your trustee, providing guidance in interpreting your trust’s instructions and holding the trustee accountable. You can also give your trust protector the power to remove and replace the trustee. This authority can be restrictive, limited to specific bad behavior by the trustee that can include being unresponsive to the beneficiaries, not providing acceptable record-keeping, reporting and tax filings, or charging too much for services. The authority can also be extensive, allowing the trust protector to remove and replace the trustee for no specific reason (without cause). Usually potential replacements (successor trustees) are named in the trust agreement, but it may also be possible for the trust protector to select a successor trustee.

Just having these oversight provisions in place is often enough to keep a trustee in line. And if it does become necessary to remove a trustee, it is much easier for the trust protector to do this (because he or she already has the authority) than for the beneficiaries to reach an agreement and ask for court removal, which is a time-consuming, expensive and unpleasant procedure.

You can also allow your trust protector to control spending by the trustee, and even limit the trustee’s compensation, which can go a long way toward preventing disputes.

Resolve Disputes
You can also make your trust protector the mediator if disputes should arise between co-trustees, between the trustee and a beneficiary, or even among beneficiaries. Having the trust protector as the final arbiter in disputes over interpreting the provisions of the trust document can sometimes avoid costly and unpleasant trust litigation.

You could even give your trust protector the ability to sue or defend lawsuits involving the trust assets.

Modify Your Estate Plan
You may also want to allow your trust protector to actually make some changes to your trust. For example, you could allow your trust protector to change the situs (location in which the trust is regulated) to a state that has more favorable asset protection or income tax laws, should the need arise.

You could also give your trust protector the power to amend or revoke the trust agreement, in its entirety or in part; to add or delete specific beneficiaries or classes of beneficiaries; or to change the terms of distributions to beneficiaries. These powers may be extremely beneficial to the trust’s ability to follow your intentions as tax laws change, as well as to protect the assets from potential predators and creditors.

Delegate Responsibilities among Advisors
Traditionally, and still with many trusts, the trustee handles everything – recordkeeping, tax returns, distributions, investing, etc. But over time, people have discovered that it is beneficial to allocate some of this responsibility to different parties that have different strengths. 

Consider giving your trust protector the ability to appoint, oversee and substitute other professionals. For example, the management of your trust could be divided like this:

  • An Administrative Trustee maintains trust records, accounts, and tax returns. If the trust is governed by laws in a different state (often for tax or asset protection reasons), the administrator will usually be a local institution or professional.
  • A Distribution Trustee or Adviser that has discretion and can make or withhold distributions from the trust to the beneficiaries. Typically this will be an objective third party, which insulates the trustee from pressure and liability associated with the power to distribute trust assets. This is especially important if a beneficiary’s creditor tries to force distributions from the trust.
  • An Investment Trustee or Adviser oversees or directs trust investments, and may be granted specific powers, including: to hold, maintain or cancel life insurance; to direct the sale or exchange of property; and to open, manage and close accounts. A general trustee is held to the prudent investment standard because of its fiduciary duty and, as a result, has restrictions on the investments it can make. Having an investment advisor that is not bound by the prudent investor rule or held to the same standard will provide more flexibility in investments.
  • The “General” Trustee handles everything that is not delegated.

Who Should Serve as Trust Protector?
Ideally, your trust protector should be someone who knows you, your motives, desires, and intentions when you established your trust. It cannot be you or a family member who is a beneficiary of your trust because of possible tax complications. An unrelated third party – a family friend, an advisor, the attorney who drafted your trust, or your family CPA – is often the best choice. They obviously must be willing to serve in this capacity, and your trust agreement should specify if they are to be paid for their services.

Who Should Have the Power to Remove or Replace the Trust Protector?
This probably should not be you, unless the replacement is explicitly limited in the document to someone who is not related or subordinate to you. You could possibly give this power to the beneficiaries or an unrelated third party. Leaving this decision to the courts would be time-consuming and costly.

If your plan has asset protection elements, no beneficiary should have the power to remove or replace the trust protector. Doing so could cause your trust to be under the control of a beneficiary and that could put the entire asset protection part of your plan in jeopardy.

Conclusion
The use of trust protectors is an excellent way to provide added flexibility, security and peace of mind in trust planning, especially since you can control how much power the trust protector is given. If you would like to discuss adding a trust protector to your estate planning, please call our office. We are ready to help.

Michael Lichterman is an estate planning and business 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 estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  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.

Forbes Puts Estate Planning As a “Must Do” in 2012

January 8, 2012 /

I recently ran across this article on Forbes.com entitled “12 Financial Resolutions for 2012.”  The article has a good list of financial-based goals that every family should focus on for 2012.  And I’m very happy to see that they list estate planning right near the top (#2 to be exact)!

As a Grand Rapids, MI wills and trusts attorney I’m pleasantly surprised to see estate planning on the list . . . especially near the top where it belongs.  Why am I surprised (even if it’s pleasantly)?  Well, the article alludes to it when it says that it is “notoriously easy to procrastinate” on an estate plan.  Most folks don’t think about it or put it off, sometimes until it is too late!  I believe that is, in part, because estate planning doesn’t receive much press . . . or at least not much positive press.

The article also makes a point that folks close to me have heard over and over and over: “you never know when [you] might need [an estate plan, including] an advance healthcare directive, durable powers of attorney, and a will and/or trust.”  Fortunately or unfortunately, estate planning is really the only area of law that we can’t get away from – one day we will pass on from this life.  Like the article says, we don’t know when that will be, so it’s best to put a plan in pace now.  It will give you some serious added peace of mind . . . trust me.

Head on over and read the article, as there are many other great suggestions.  Make sure to share your thoughts here on the blog by way of comment below.  And give us a call at 616-827-7596 to schedule your Peace of Mind Planning Session and have added peace of mind knowing you have a caring plan in place for your family.

Michael Lichterman is an estate planning and business 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 estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  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 Pitfall – Not Having A Stand-alone HIPAA Authorization

November 5, 2011 /

The research is clear – we are living longer and needing more medical care as a result.  This makes the Power of Attorney for Healthcare (also referred to as a Patient Advocate Designation) a critical component of any well-drafted, comprehensive estate plan.

But did you know that there is another healthcare-related document that can be critically important to managing your finances when you are unable to do so yourself . . . a document that many estate plans lack?  It’s a stand-alone HIPAA authorization and it can help ensure a smooth transition for your financial agent(s) and help your family stay out of court.

You see, the trusted family, friends, or financial institutions that many individuals choose to manage their financial affairs if they are incapacitated are not necessarily the same ones chosen to make healthcare decisions.  A comprehensive estate plan will use Financial Powers of Attorney and Trusts to help ensure your finances can be handled by those you trust most if your are unable to manage them yourself.

Many times the authority given to others in Financial Powers of Attorney or Trusts do not become “effective” until you are incapacitated or otherwise unable to manage your financial affairs.  A physician is usually involved in making the determination of incapacity and signing the necessary certifications so that your financial agents can begin managing your financial affairs.

Traditional planning and the Health Insurance Portability and Accountability Act (HIPAA) can throw a wrench into the situation.  How?  HIPAA restricts access to your medical records to those who you authorize.  Because your financial agents may not be the same as your healthcare agents, any HIPAA authorizing language in your Healthcare Power of Attorney will not cover them (you do have HIPAA authorizations in your Healthcare Power of Attorney, right?).  Without that authorization, the physician most likely will not sign off on the necessary documentation and your family (and agents) could end up having to go to court to move forward.  This would likely lead to costs and delays you no doubt wanted to avoid.

That’s where the stand-alone HIPAA authorization comes in.  It allows you to name individuals who can have access to your medical records without giving them authority to make medical decisions.  Certainly your healthcare agents would be included, but you should also consider including your financial agents and trustees (if you have a trust).  Doing so, will help ensure that the transition of authority can be a smooth one and your estate plan works when it is needed most.

Michael Lichterman is an estate planning and business 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 estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  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.

Beware the Double Tragedy in Estate Planning

October 23, 2011 /

Last week was National Estate Planning Awareness Week.  An entire week dedicated to raising awareness of the critical importance of estate planning.  It is estimated that over 120 million Americans do not have up to date estate plans.  And according to a recent study, 70% of respondents said that Americans fail to plan because they lack awareness as to why they should.  Even worse, 62% of respondents to the same survey believed that many Americans do not plan because they have the erroneous assumption that estate planning is only for the wealthy.  It certainly is not – read my blog post on the topic here.

So what does that have to do with the double tragedy I refer to in the title?  Even a better question is, what is the double tragedy?  It is this: a dear family member or friend passing away (or you passing away) and a complete lack of an estate plan or a poorly drafted estate plan.  I call it the double tragedy because your family will be dealing with the loss of someone they loved dearly, so why add to their frustration, grief and hardship by leaving them with a mess with your estate due to lack of planning or a “cheapo” estate plan.

Sure, sometimes things go smoothly, but that certainly is not the case in many circumstances.  Why take the chance?  Take the time and money to work with an attorney who focuses on estate planning to help create a comprehensive plan that will show your family how much you cared . . . even after you are no longer here for them.

Michael Lichterman is an estate planning and business 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 estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  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 Biggest Misconception About Wills

April 17, 2011 /

As a Grand Rapids Estate Planning attorney, I regularly hear misconceptions about estate planning.  A recent conversation reminded me of what I believe is THE biggest misconception about Wills.  During the conversation, a friend said “so I have my will or trust, so I don’t have to worry about going through probate…”

The Myth: having a Will means you don’t go through probate.  And the buzzer says “bzzzzzt,” wrong.  Just having a Will virtually guarantees that you go through probate.  A Will serves as a “roadmap” for the probate process – it allows you to say who you want to do certain things and how you would prefer they be done (and if you have minor children it is one of the ways to name guardians, but definitely NOT the “best” way, in my opinion).  If you’re curious to know more, you can read my previous blog post on the topic by clicking here.

Michael Lichterman is an estate planning and business 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 estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  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.

Tips On Keeping Your Michigan Estate Out Of Court

March 20, 2011 /

As a Michigan Wills, Trusts and Estate Lawyer, one of my main goals is to help my clients avoid or manage conflict, either now or after a tragedy (death or incapacity).  This goal is one that I feel “traditional” estate planning pays less attention to than is deserved.  It is an area where the “counselor” part of “attorney and counselor at law” becomes keenly important.

Why?  Because the alternative in many cases is a costly lawsuit and/or hurt feelings.  For example, I recently ran across this article, which hints at the results of poorly counseled estate planning and gives real examples of what can lead to problems mentioned above.  And notice that the article is written by an estate litigation attorney.  These are “real life” examples.

As the article points out, many seemingly “benign” decisions can potentially lead to disastrous results if they are not the result of proper counseling and planning.

Here are just a few of the examples the article author gives as leading to courthouse controversy over estates:

  • Do It Yourself (DIY) estate planning – you can read my previous blog post about DIY planning here.
  • Not having even a basic estate plan.  Without this, you are left with the State of Michigan’s plan for you.  A court will decide who gets what and who makes your healthcare decisions.
  • Picking the wrong person to be in charge.  Many families pick certain people out of a sense of obligation, not based on how well they would perform the task for which they were chosen.

I encourage you to read the rest of the examples given in the article.  And if you’re ready to take steps to make sure your legacy isn’t left to squabbling and undesired court involvement, call us at 616-827-7596.

Michael Lichterman is an estate planning and business 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 estate and asset protection planning for  the “experienced” generation, the “sandwich generation” (caring for parents and children), doctors/physicians, nurses, lawyers, dentists, professionals with minor children, family owned businesses and pet planning.  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.

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.

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.

Asset Protection Planning for Physicians

July 18, 2010 /

Growing up with a mom who has worked in the medical field for over 35 years, I know of the sacrifice and struggle that Michigan physicians face on a constant basis.  They are constantly targets of malpractice lawsuits as well as other legal actions such as employee lawsuits for sexual harassment, unfair termination and discrimination; and business and practice-related litigation.  And it seems that Physicians are targeted for every ill-conceived investment idea.  Yet they sacrifice their time and expertise to help care for others.  It is truly a noble profession.

Do they deserve to be in these cross hairs?  I sure don’t think so.  That’s why I’ve been working on better serving physicians and their families.  Contrary to what many believe, asset protection planning is not all about offshore trusts and Swiss bank accounts.  It is about adopting advanced planning strategies that legally place assets beyond the reach of creditors, discouraging lawsuits by lowering a physician’s financial profile so that they become a far less attractive target, and enhancing leverage in negotiations if a lawsuit is filed.

Know that although asset protection planning is confidential, it is NOT based on secrecy or fraudulent transfers, does NOT involved hiding assets and is NOT a tax dodge.  Professional and personal convictions don’t allow such unethical (and potentially illegal) methods.

It is important for Michigan physicians to work with an estate planning attorney who is both well versed in these advanced planning strategies AND can understand the threats Michigan Physicians face and the constantly changing environment in which they work.  Are you a Phyisican or do you know a Physician?  Please share your thoughts.

Michael Lichterman is an attorney specializing in estate planning and helping provide peace of mind to families and businesses throughout Grand Rapids and West Michigan.  He specializes in Whole Family Wealth™ planning for professionals with minor children, doctors/physicians, nurses, lawyers, and the “sandwich generation” (caring for parents and children) – and does 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.

Why You Should Care About Estate Planning: Professionals

June 13, 2010 /

Moving along in my Intro to Estate Planning series, we will continue to look at why planning is important for  family of different types and at different life stages.  I started by uncovering the many benefits estate planning holds for parents with children under 18.  If you are a parent with children under 18 years old and still have questions, contact me to have your questions answered.

The next group we’ll look at is more of a “type” of family rather than a stage of life: professionals.  My definition of a “professional” is broad, including doctors, lawyers, certified public accountants (CPAs), accountants, bankers, financial advisers, nurses, teachers, middle- to high-level company managers, CEOs, company Presidents, and other similar positions.  I view this group so broadly because they all share similar concerns, at varying degrees.

Some important reasons proper estate planning is critical for professionals (and their families) include:

  • Guardianship remains one of the most important reasons to estate plan if you have children under 18 years old.  Without designating who you want to raise your children in your absence, a court will decide who will care for them. If you haven’t named guardians for your children, you should run, not walk to an attorney specializing in estate planning (and focusing on guardianship decision).  If you have named guardians, you most likely made at least 1 of 6 common mistakes.  Contact me to learn more!
  • Asset Protection. As a professional with a special skill, you face a greater threat of liability.  You have worked hard to accomplish great things and are building a secure financial future for your family.  Don’t leave it exposed to future divorce, lawsuits and creditors.  And this pertains as much to you as it does to your children and grandchildren (and on down the line).  You can pass your financial wealth on to them protected from divorce, lawsuit and creditors as well.
  • Planning for your incapacity to avoid bitter conflict about your finances and your health care. You need to give people you trust the legal authority, guidance and direction on how to handle your finances and your health care.  Enhanced Powers of Attorney, EnhancedPatient Advocate Designations, and Living Trusts are key components to making sure your wishes are recognized and followed.
  • Avoiding probate.  Without a proper plan in place, your hard earned wealth will go through a time consuming and often costly court process. Wouldn’t you rather your family be able to benefit right away and receive more of what you worked so hard to accomplish?
  • Passing on your “whole family wealth,” not just your money.  This includes your values, insights, stories and experiences – who you are and what is important to you.  In my experience this is THE most overlooked part of estate planning.  The professionals I’ve worked with have accomplished a lot and continue to reach new levels of accomplishment.  Yet in most circumstances they have not taken the time to explain their struggles, how they overcame, and what they learned – these are far more important than money to their kids, grandkids, and future generations.

These are just a few of the reasons professionals need an estate plan.  Can you think of more?  Please share your thoughts and experiences.

With my next post in the series, I will look at the “sandwich generation” – people who have concerns about their parents and their children.

Michael Lichterman is an attorney specializing in estate planning and helping provide peace of mind to families and businesses in Grand Rapids, Grandville, Cascade, Forest Hills, Ada, Byron Center, Caledonia, and the surrounding areas.  He specializes in “whole family wealth” planning for professionals with minor children, doctors, nurses, lawyers, and the “sandwich generation” (caring for parents and children) – and does 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.

Make sure you pass on your “whole family wealth,” not just your money.  This includes your values, insights, stories and experiences – who you are and what is important to you.  In my experience this is THE most overlooked part of estate planning.  It happens to be one of the most fulfilling privileges I have when working with families.