Perlin Estate Planning

Community Activist Flower Shop at Center of Estate Battle

“Family issues over the estate of the late Veronica Shoemaker have been settled. Her daughter, Mattie Young, will continue to run the florist shop that the long-time community activist opened 42 years ago.”

Mattie Young battled to maintain her mother's legacy of a lifetime of service to a Florida community. Young is the daughter of the late Veronica Shoemaker, who was a Fort Myers community activist for many decades. Mattie struggled to keep the flower shop bearing her mother's name, after a contested will struggle that threatened her mother's legacy.

The Fort Meyers news-press.com reported on this saga in “Shoemaker estate issue settled; florist shop stays open.” Family members apparently reached an agreement that assured Mattie would continue to run the Veronica S. Shoemaker Florist Shop in the Dunbar community its founder served for decades.

"It's important that her legacy here, her legacy in the community and her spirit continue," Young said.

Veronica Shoemaker's will was challenged in court by her granddaughter Latoya Shoemaker, the daughter of her late son who died in 1982. Latoya argued that her grandmother lacked capacity to make a will, because she was suffering from the effects of Alzheimer's disease. Latoya claimed at one point in the dispute, that the signatures of Veronica Shoemaker were forgeries. The suit stated that Veronica Shoemaker was diagnosed with Alzheimer's in 2007.

Veronica’s will left the florist business to her daughter. She noted that, as she faced advancing age, Mattie had worked to maintain the store's place in the community. Veronica Shoemaker died Jan. 21, 2016, and the will was filed in probate court in June. It was challenged a month later.

An agreement was struck with the help of a mediator and was filed in court. The trial scheduled to begin that week, was canceled.

Although some of the terms of the agreement were kept confidential, Mattie, her niece Latoya Shoemaker and her brother Bennie will be given equal shares in what remains of Shoemaker's estate, after the final expenses are paid and any property sold. The will filed in court had provided for only a 10% percent share for Latoya.

Mattie will continue to operate the flower shop that her mother founded 42 years ago. She expressed relief that the episode was over and her mother's name will remain prominent in the community she inspired and served.

"She put everything she had into this corner," Young said at the store at the corner of Dr. Martin Luther King Jr. Boulevard and the former Palmetto Avenue Extension, renamed Veronica Shoemaker Boulevard in honor of the first black person to win election to the Fort Myers City Council.

Reference: (Fort Meyers FL) news-press.com (April 26, 2017) “Shoemaker estate issue settled; florist shop stays open”

You Can’t Take It with You, but Dying Isn’t Cheap

“Funerals cost $6,000 and up, but planning can help you cut the big expenses.”

No one likes to talk about death, because it's considered taboo. But one subject even more taboo is money, contends gobankingrates.com. According to its article, “7 Money Secrets about Dying That No One Wants to Talk About,” if you don't talk or plan for dying, your death could cost your family a considerable amount of money. Read on to consider some valuable money secrets about death and how to be prepared.

Funerals Can Be Darn Expensive. Funerals homes charge about $6,000 for funeral services, and you'll pay an additional $2,000 for burial, $1,000 for a grave marker or $2,000 for a headstone. That adds up to $10,000 or more. Your family could also spend even more, if you don't put your final wishes in writing and discuss them with your family. The high cost of a funeral you didn’t want, could put your family in debt.

Look at Less Expensive Funeral Options. It’s hard to be sensible and objective when you're dealing with the emotional stress of a loved one's death. However, there are differences in prices. You can find this information online. Do some comparison shopping for your family and tell them which funeral home you prefer.

A Funeral Package Deal Isn’t Always a Great Deal. A funeral home might offer a package, but you may not want or need everything that's in it. Look at your options because funeral home pricing is dependent on the services provided. You can also buy the grave marker, headstone or casket online directly from wholesalers or distributors, which can cut costs.

A Traditional Funeral Isn’t the Only Option. Don’t feel pressured into having a traditional funeral for yourself or your loved one, especially if you can't afford it. The difference between a full traditional burial and a cremation can be $7,000, with the additional services required.

Prepaid Funeral Policies. Funeral homes and insurance companies offer prepaid funeral policies. This sounds like a good way to save your family money on your funeral costs, but you can spend more on premiums than the policy will pay at your time of death.

When you don't plan or you plan improperly, your family will pay the price. While you are at it, spend the money to have an experienced estate planning attorney draft a will so that it conforms to your state's laws.

Reference: gobankingrates.com (March 14, 2017) “7 Money Secrets about Dying That No One Wants to Talk About”

Some Facts about Elder Financial Exploitation

“As with those who have endured other types of abuse, victims of financial elder abuse often feel they can't or shouldn't seek recourse.”

Perpetrators of financial exploitation are frequently family members, caregivers or other people who are known and trusted by the elderly. This makes many seniors who are financially exploited, even more reluctant to come forward. Perpetrators often depend on this or pressure victims to keep quiet.

As Yahoo Finance recently posted in “What to Do If You or Someone You Love Has Been Financially Exploited,” betrayal by a family member or another trusted person is especially hard on those who are financially abused. Seniors who've been financially exploited, may feel shame and guilt. Consequently, they do not feel entitled to help or support, let alone to feel victimized.

The widespread nature of financial exploitation shows that it can happen to almost anybody. More states are trying to find ways to legally address financial exploitation and to better address and deter this abuse, as the population ages and an increasing number of seniors are vulnerable.

Most states criminalize financial elder abuse.

This means that, in addition to laws already in effect to prosecute theft, there are added penalties, which can be filed in financial exploitation cases involving seniors or vulnerable adults, increasing the jail time for perpetrators.

Some states also now have statutes allowing older or vulnerable adults to sue specifically for elder financial exploitation. The states include Arizona, California, Florida, Oregon, Minnesota, Utah, Illinois and Washington.

A key feature of elder financial exploitation cases is that they allow victims to sue for multiple times the amount lost (usually two or three times the amount) and to recover attorneys' fees. This punishes perpetrators more and acts as a deterrent. This approach also encourages settlement of these cases. Awarding attorneys' fees is another incentive for seniors to secure legal representation.

Remember that the cost of financial abuse goes beyond the monetary loss. Victims and their families should access services, like counseling and case management, to help them heal after being financially abused.

Reference: Yahoo Finance (March 14, 2017) “What to Do If You or Someone You Love Has Been Financially Exploited”

The Bumpy Ride of Care for Your Parents

“Thanks to Father Time and copious amounts of prescription drugs, people are living longer. But with longer lives comes the potential for increased healthcare needs.”

It can happen out of the blue. One second your folks are in pretty good shape. The next second, your dad is in the hospital with pneumonia and your mom is showing signs of early onset dementia.

How the devil did this happen? This is the basic question asked by Chicago Now in its recent article, “Getting Old Sucks: Why To Start Estate Planning With Your Parents.” As the article puts it: “you are officially on the rollercoaster ride to elder hell.”

Fortunately, there are things you can do on this bumpy ride to make it easier on you and your parents. While it’s uncomfortable at first discussing the topic of death with your parents, it’s necessary and important.

Talk to them about estate planning and make sure that they have wills, durable healthcare and medical powers of attorney (POA) and health care directives. If your parents don’t have these documents, you should make an appointment with a qualified estate-planning attorney and get this completed today as soon as possible.

For example, what if your father has a debilitating stroke, doesn’t regain consciousness and needs 24/7 medical support indefinitely? Without a health care directive, the hospital will keep him alive, even in a vegetative state, until he passes naturally.

You’ll be unable to have him removed from life support, unless you can show the physician and hospital administrators his legally valid health care directive and his medical POA that details his wishes. Without these estate planning documents, you and your mother will have limited control on how he should be treated.

From a financial standpoint, it is important to remember that the hospitals will continue to bill you even when your father is on life support and technically brain dead. After 100 days of Medicare coverage, your mom will be fully responsible for these care and treatment expenses, if there’s no supplemental insurance.

Start the dialog with your parents and let them determine how they want to live and die. This will save you and your loved ones considerable stress, frustration and heartache in the future.

Once this is under control, work on your own estate planning. You should contact a knowledgeable and experienced estate-planning attorney with your questions.

Reference: Chicago Now (March 7, 2017) “Getting Old Sucks: Why To Start Estate Planning With Your Parents”

Battle Continues Over Country Singer’s Estate

“This case arose out of a will contest between the wife and son of deceased musician Ray Price.”

 

Price's widow filed an interlocutory appeal alleging that the trial court erred in appointing a receiver to take possession of property subject to the will contests, according to a recent write-up in The Texas Lawyer, “In the Estate of Noble Ray Price.”

Price, one of country music's most beloved singers, died at home on December 13, 2013 at the age of 87. Price had been hospitalized in Texas and had been fighting a battle against pancreatic cancer for about a year. The day before he entered hospice care, Price left a message to fans: "I am at peace. I love Jesus. I'm going to be just fine. Don't worry about me. I'll see you again one day."

Citing Chapter 64 of the Texas Civil Practice and Remedies Code, the court explained that for a receiver to be appointed, the party seeking appointment must have a probable interest in or right to the property or fund. In addition, the property or fund must be in danger of being lost, removed or materially injured.

The review of the trial court's determination is for an abuse of discretion.

The court of civil appeals examined the pleadings and testimony of the case. It showed that Price's son Cliff was contesting the validity of a will that Price signed in the hospital right before his death. Cliff claimed that Ray lacked the capacity to execute the new will.

The appellate court found that the trial court didn’t abuse its discretion in determining that Cliff had a probable interest or right to the property.

In addition, the court of civil appeals stated that in light of Price's widow's testimony that she felt Price's property belonged to her and not to the estate, and that she had accepted payments on Price's behalf and written herself a check from his record company, the trial court didn’t err in holding that the property was in danger of being lost, removed or materially injured.

Accordingly, the court of civil appeals affirmed the decision of the Texas trial court.

Price's musical career spanned more than 65 years, and music experts say his recordings are some of the most versatile in country and western music history. They ranged from honky-tonk to western swing to a more complex sound in the 1960s that brought him some of his biggest hits.

Reference: Texas Lawyer (March 1, 2017) “In the Estate of Noble Ray Price”

Estate Planning with a Child with Addiction

“Many parents who have children struggling with addiction or mental illness are often too consumed with caring for those children in the present, to give any thought about how those children will be cared for when they are gone.”

A question to consider in estate planning, if you have children is: Do your children now or have ever they struggled with alcohol, drugs, gambling or mental illness in the past?

Trust Advisor’s recent story, “Hope For The Best, But Build Trusts For The Future Of Children With Special Challenges,” remind us that an estate planning attorney is there to help with these unavoidable issues through proper estate planning.

Before diving in, estate planning requires a parent to acknowledge that an addicted son or daughter may never recover. With this in mind, estate planning must be done so that the child never has easy access to funds. In this instance, a trust with special-purpose language may be a wise option.

This solution gives you traditional estate planning goals like avoiding probate, minimizing taxes and ensuring that the intended beneficiaries are named. However, it also needs to be customized for a unique family situation, such as a child with addiction.

Parents can add a clause that lets the trustee deal with such a child. The clause can even have an incentive for the child to meet certain goals or requirements to receive a distribution from the trust, like staying sober.

Estate planning for addictive children has a few special wrinkles, but it’s very similar to traditional estate planning. Work with a qualified experienced estate planning attorney, so you can protect your child from their addiction and from themselves.

Reference: Trust Advisor (February 15, 2017) “Hope For The Best, But Build Trusts For The Future Of Children With Special Challenges”

How Does Pre-Death Probate Work?

“There are a handful of states that allow a person to probate a will…before the testator… dies. In recent years, there has been a trend to expand this practice to more states.”

This practice, which lets challengers contest the validity of a will before the person who created the will passes away, is explained by Trust Advisor in its recent article, “10 Arguments Against Pre-Death Probate and Will Contests.”

This concept of Pre-Death Probate, or “Ante-mortem Probate,” is only allowed in four states—Ohio, Arkansas, North Dakota, and Alaska. Why don’t more states allow it? It is because of the long-standing legal notion that that a will doesn’t “speak” (or take effect) until the testator’s has died.

You usually can’t bring a suit until the testator dies, because no one has legal standing to contest the will prior to the testator’s death. The trend away from this traditional rule started some years ago.

Recently, a few states have introduced legislation to permit ante-mortem probate and ante-mortem will contests. Ante-mortem probate procedures vary by state, but they generally allow a testator to seek a ruling from the court, while he or she is still living, that his or her will is legally valid. Every heir named in the will must be named as a party to the lawsuit. Therefore, it binds any potential challengers to the court’s verdict and keeps them from contesting the will when the testator dies.

Those in favor of ante-mortem probate say that there are several benefits to the practice, including: (i) providing certainty and avoiding family disputes after death; (ii) ensuring that the testator can testify in favor of the will; and (iii) discouraging challenges to a will, because if a person opposes the validity of the will while the testator is alive, he or she would be cut out by the testator and disinherited.

Despite these potential benefits, some say the practice is detrimental, leading to increased litigation.

Here are some of the other drawbacks to ante-mortem probate:

Unnecessary Litigation. Litigation is forced on all heirs, when perhaps none of them would have challenged the will under the traditional scheme.

Discomfort. The testator must deal with the litigious heirs, after the litigation is completed.

Do-Over. A pre-death probate proceeding could be a waste of time and resources, since the testator is always free to change his or her will later.

Cost. A pre-death probate proceeding could take a significant chunk of the testator’s retirement savings. Compare this to a conventional will challenge, which is defended by the executor at the expense of the estate since it occurs after the testator is deceased and doesn’t need the money.

Stress. The testator must endure the stress of the pre-death probate proceeding, which entails being deposed, discovery and court appearances.

Privacy. The testator’s privacy could be invaded in any litigation and in discovery.

Reference: Trust Advisor (February 23, 2017) “10 Arguments Against Pre-Death Probate and Will Contests”

Taking Care of an Elderly Parent Can be a Full-time Undertaking

“Each year over 43 million Americans provide unpaid care to a family member, usually a parent.”

Adult children who care for an elderly parent will typically be asked to oversee and provide medical care and finances. However, sometimes the caregiving goes far beyond this. As a result, many adult children caregivers fail to think about the financial impact that this can have on their own monthly budgets and retirement funds.

MarketWatch’s article, “Read this before becoming your parents’ caregiver,” reports that, in many instances, the adult child caregiver is still able to maintain a full career and family life. However, in certain situations, the family member who’s assumed the role of a full-time caregiver must reduce his or her work hours or forego a promotion because of the time commitment. In the majority of situations, we see adult children answer the call of caregiving in a crisis when there’s an imminent need. A short-term assignment can be doable for a professional with his or her other family and personal responsibilities, but when the duties last longer, he or she will realize there isn’t enough time or resources to do it all.

A caregiver needs to take the actions necessary to help without putting his or her own family’s financial future at issue. When there are siblings and other family members involved, it is necessary to communicate realistic expectations of what areas of care are needed, responsibilities, time commitments and whether there will be any financial compensation.

A Personal Care Agreement can be a good guideline. It will help to detail which individuals are responsible for various aspects of care, the amount of time required and any compensation. The biggest question that people have about this agreement, is how to get paid to be a family caregiver.

A Personal Care Agreement can give an adult child caregiver the peace of mind and security that he or she won’t suffer undue financial consequences, as well as provide clear details for other family members as to the expectations when assuming these important caregiving responsibilities.

This agreement can help avoid some of the misunderstandings that can occur when many siblings and loved ones are trying to help (or fail to pitch in). It also can protect a family member who is losing his or her own income and time to provide caregiving. This is because reduced hours or an exit from the workforce to care for a loved one, can have a major personal financial impact. In addition, the time for a personal and immediate family life with one’s own spouse and children can nearly evaporate with caregiving demands.

You can work with an Elder Law attorney to draft a Personal Care Agreement. Having an attorney review your Personal Care Agreement can even help to confirm that care payments were a legitimate and necessary expense, rather than a way to conceal assets from Medicaid.

Reference: MarketWatch (February 22, 2017) “Read this before becoming your parents’ caregiver”

Legacy Planning for the Next Generation

You've probably heard the words "Legacy Planning," but you may not actually know what it means.  Legacy Planning is a concept in Estate Planning that takes into account the passing on of your life experiences and values to the next generation.  Sure, you may have amassed physical property and wealth that you wish to pass along, but what about your thoughts, memories and emotions?  How can you ensure that those intangibles also make it to the next generation? 

Legacy Planning is how this is done.  As this article from The Trust Advisor highlights, there are many ways to ensure that these invaluable experiences and pieces of wisdom are not lost through the passage of time.  Here are a few ideas: 

• Keep a Journal - By maintaining a journal that you'll pass along to the next generation, you can pass on not only your life experiences but also your thoughts and insights on those experiences. 
• Record a Family History - Ask a family member to interview you, or just turn on a camera and start sharing information about your family tree and your own personal history. 
• Keep Well-Documented Photos - Compile an album of photos to encapsulate your life experiences and document those photos with names, dates and personal insights.

The options for preserving your legacy are endless.  And while the physical property will certainly be appreciated by the next generation, it's these insights into your way of life and your manner of looking at things that your loved ones will find irreplaceable.  

Before it's too late, take some time to decide how you wish to do your Legacy Planning.  Our office can also assist you in developing and implementing a plan that feels right for you.  While this is an often overlooked area of estate planning, generations to come will thank you for such a thoughtful and generous way to pass on your legacy! 

Myths of the Midlife Marriage

“Marriage after age 50 is a wonderful thing, but it also has some financial challenges.”

There are numerous money myths that you’ll hear when you consider getting married at midlife, particularly if your spouse-to-be has children from a first marriage. Here are six common myths from Forbes’ recent article entitled “6 Money Myths About Marrying After 50”:

1: Prenups Are Just for The Rich and Famous. This is not true. If you’ve been married before and have children from a previous relationship, a prenuptial agreement is important to ensure that your assets will pass to your children from the prior marriage. What about a first-time marriage? There still might be a need for a prenup, especially if you own significant assets. Don’t think of a prenup as preparing for divorce, but rather more like writing your will. If you don’t have your affairs in order, the state will decide for you—just like dying without a will. After age 50, the focus of a prenup should be on protecting your children and grandchildren. For instance, some states allow a surviving spouse to claim his or her “elective share”, instead what’s in the decedent's will. A prenup allows your spouse to waive the elective share. That means the odds are that your estate plan won’t be challenged by your surviving spouse.

2: Don’t Talk Estate Planning with Your Stepfamily. Estate planning is critical when you have children from an earlier marriage. Otherwise, your entire estate could pass to your new spouse and not to your own children. Have a candid discussion about your estate planning and prenup with your adult children and your new spouse. This will alleviate some of the concerns adult kids may have about how it will affect their inheritance, when their parent gets remarried.

3: Holding Assets Jointly Is Always Preferable. Long before getting married, couples should decide on whether they want to have separate or joint accounts and if one will sell his or her current home. If one of you sells their home, will the deed to the house you live in be changed to reflect join ownership? It is best to have these discussions before the wedding ceremony.

4: Your New Spouse’s Debt Won’t Impact You. This is a big one. Marrying a person with a large amount of debt, whether it’s college loans or credit card debt, can be a major issue in second marriages. Therefore, spouses should be upfront and candid about their debts before marrying. That way they can plan how to address the debt.

5: It Always Makes Financial Sense to Get Married. This is not always true. It depends on your personal and financial circumstances. Tying the knot may reduce your Social Security benefits, especially if you didn’t work while you were married the first time and can claim spousal benefits that are much higher than your own Social Security benefits. If you have an ill or disabled partner on Medicaid, then you might want to stay unmarried so he or she can to continue to qualify for benefits. The combined marital income might make your partner ineligible for Medicaid.

6: Your Spouse Automatically Has a Right to Make Your Medical Decisions. This statement is not true. If there’s no advance health directive in place that details your wishes regarding end-of-life care, it’s not a certainty that your new spouse will be able to make medical decisions for you or tell your doctor what treatment you’d want. You should be clear in writing what your wishes are, so your new spouse and your adult kids will not fight over your care. Talk with your new spouse and your adult children, so they know your wishes and set up an advance health care directive. This should be part of your estate plan, which should also be revised to reflect the new marriage.

Reference: Forbes (February 13, 2017) “6 Money Myths About Marrying After 50”