Michigan Estate Planning Lawyer Blog

Today, I attended an Oakland County Probate update put on by the Oakland County Bar Association.  As a Oakland County Probate Lawyer, attending these trainings are vital to staying current on the ever changing nature of the law and the local court rules.  For example, I received the EPIC Cost-Of-Living Adjustments in a nice graphical breakdown.

These types events are not attended by general practitioner attorneys who dabble in estate planning and probate.  By focusing only in these area, I am better able to service my clients needs in an efficient matter, as opposed to being a jack-of-all-trades master of none.

-Christopher J. Berry, Esq.
Oakland County Probate Lawyer

As Oakland County Estate Planning lawyers, our clients often ask us how to approach their parents to make sure their aging parents are properly planned for.  Especially in terms of nursing homes, long term care, and estate planning.

Having a conversation with your elderly parents about their future is not an easy topic to approach.  It often times makes adult children nervous because they fear resistance, conflict and silence.  However, according to www.talk-early-talk-often.com, you should fear the crisis that could occur if you don't start this conversation.

They recommend that you start beginning the talks with your aging parents by starting out small.  However, topics that need to be covered include long term care options and estate planning goals.

To avoid crisis, www.talk-early-talk-often.com recomend focusing on TEMPO as an acronym for the talks

• T-iming: It is important to approach the subject at the right time.
  
• E-xperiences: It is often best to tie the conversation to direct experciances, such as if you just completed your estate plan with your  estate planning lawyer.
  
• M-otivation: Make sure to be clear about your motivation for the discussion.  Your motivation should be for the benefits of your parents.
  
• P-lace:  Make sure that you have created a "safe space" to have these discussions.  Privacy is important, so having this discussion in a public place may not be the best idea.
  
• O-utcome: Your outcome should be to establish a safe, honest, open dialogue on the future long term care and estate planning needs of your parents.
  

Continue reading "Talk to Your Elderly Parents about the Future | How To Start?" »

Michigan didn't make the list.  Forbes.com put together a graphical representation of the states that impose estate taxes on top of the already imposing Federal Estate Tax.  Michigan does not impose additional death or estate taxes

-Christopher J. Berry, Esq.
Michigan Estate Planning Lawyer

In Estate Planning Gone Wrong Part 1, I discussed the mistake of people trying to do their estate plan on their own without the aid of a Michigan estate planning lawyer.  In Estate Planning Gone Wrong Part 2 I discussed the second major issue we see at our Oakland county estate planning law firm, that being people not updating their estate plans.  In Estate Planning Gone Wrong Part 3, I discussed how failure to update and review your estate plan can cause problems.

The fourth area of of Estate Planning Gone Wrong involves the use of Quicken Willmaker 2009 to prepare a trust.  Florida estate planning lawyer, David M. Goldman, has a wonderful post on just all the problems of using Quicken Willmaker 2009 software to prepare your estate plan.

Continue reading "Estate Planning Gone Wrong | Part 4" »

In White Lake, Oakland County, an elderly man was found frozen to death.  According to the Detroit News report, the man had early onset of Alzheimer's Disease and had wandered away from a relative's home.

According to police, "It's appears nothing more than an unfortunate accidental death, he was found unresponsive several hundred yards from the home. He didn't have a coat on him and the temperature was around 19 degrees ... it wouldn't take long under those circumstances."

There was a similar case last year of a Southfield woman with Alzheimer's Disease who had wandered out of her nursing home and died in the snow wearing nothing more than a hospital gown. 

We need to take better care of our Michigan seniors, especially those suffering from Alzheimer's Disease.

-Christopher J. Berry, Esq.
Oakland County Elder Law Lawyer 

There has been much debate in the estate planning community as to what President-Elect Obama planned to do with the Federal Estate Tax, otherwise known as the death tax.  As a Michigan estate planning lawyer, I help our clients plan for the Federal Estate Tax.

The current tax exempts estates smaller than $3.5 million.  In 2010, there is an unlimited exemption.  However, as it currently stands, come 2011, anything over $1 million that is passed to non-spouses will be taxed at 55%.

According to a recent Wall Street Journal article, President-Elect Obama plans to lock in the current $3.5 million exemption and tax anything over that amount at 45%.  For example, if you have an estate (including business interests, house, life insurance, etc) totaling $4.5 million, you will be paying $450,000 in taxes under his plan if you do not do any estate planning to minimize the tax hit.

Continue reading "Obama Plans to Keep the Estate Tax" »

Typically upon reach the age of 70 1/2 you would  have to begin taking out your minimum required distributions out of your retirement accounts.  By retirement accounts I mean IRAs, 401(ks), and 403(b) accounts, all deferred taxation qualified accounts.

However, with the recently passed Worker, Retiree and Employer act of 2008, there is a one-year moratorium on the penalties so that retirees and older Americans will not be forced to take their withdrawals from these savings plans that have incurred dramatic losses with the state of the economy.

Continue reading "Penalties Waived for Mandatory Withdrawals in 2009" »

As a Michigan estate planning lawyer, knowing the different types of propery is vital.  There are two legal types of property in Michigan.  There is personal property and then there is real property.  You may be asking yourself what is the difference, isn't all property "real"?

Real property is generally described as buildings, land, houses, commercial buildings, etc.  Think of it as property that is immovable.  Real property also includes the surface (trees, rocks, grass, ground, and underground of property.  This type of property can be thought of as permanenet.  Also note, this type of property includes what is underground as well, such as oil, water, gold, clay.

Personal propery is described as everything else.  For example, your pots and pans, car, household items, patents, retirement accounts, etc.

These types of property are important as it relates to estate planning because estate planning plans for your property and uses specific legal definations as it relates to naming your property.  Another important aspect of these types of property relates to how you title your proeprty.  For example your house, which is real proeprty, would be use a deed to show title of ownership of the property, but your pots and pans would not have any type of deed or title evidencing property.

Christopher J. Berry, Esq.
Oakland County Estate Planning Lawyer

A completed inventory is one of the requirements for closing a probate in Michigan.  As Michigan estate planning and probate lawyers, we assist our clients through the process.  A common question from clients as we go through the Michigan probate system, whether in Macomb, Oakland or Wayne, is "what goes on the inventory?"

The answer is anything that needs to be probated or in other words any property that does not list someone else as a beneficiary of the asset or lists the estate as a beneficiary and is not titled into a trust.  It comes down to title and beneficiary designations. 

Continue reading "What Goes On a Michigan Probate Inventory?" »

Michigan was an early adopter of laws allowing for the creation of pet trusts that provide for your beloved pets in your estate planning documents.  Recently Freep.com ran an article on how estate planning can protect pets.  You can read the article here.

Our Michigan estate planning law firm has extensive experience in this specialized area of law.  My partner, Michael Witzke was profield in a past Detroit Free Press article on pet trusts, esepcially for horse owners.

-Christopher J. Berry, Esq.
Michigan Estate Planning Lawyer

Times are tough in Michigan and across the country.  Because of this down economy there are rare opportunities available in estate planning.  This is an opportune time to take a look at the estate planning tools available and discuss transferring assets to the next generation with your Michigan estate planning lawyer.

Due to the depressed marketplace, asset valuations allow you to pass along your assets with less gift tax.  Additionally, with record low interest rates, there is a prime opportunity for intra-family loans.  This also is an opportune time to make use of one of the common estate planning techniques that can be utilized in a down economy which is a grantor retained annuity trust, otherwise known as a GRAT.

Continue reading "Estate Planning in a Down Economy" »

Whether you are the personal representative or trustee for a deceased's estate or going through the funding process of your own revocable living trust, it is important to understand the different types of jointly owned property in Michigan.

The first type of jointly owned property is called "Tenancy in Common".  Two or more people often purchase property and then hold title as tenants in common (or abbreviated to TIC).  With TIC, each person owns a proportionate share of the property.  For example, if there are three owners, then each owner owns a 1/3 share of the property.  Each person therefore has an individual interest so that if one party dies, they can pass their interest through trust, will or Michigan probate.

The next type of joint ownership is called "Tenancy by Entireties".  In Michigan, tenancy by the entirieties is a form of property ownership that is only available to husband and wife.  With the death of either owner, the survivor is the sole owner of the property.  Additionally, neither can dispose of the property while living, without the consent of the other.

The next type of joint ownership in Michigan is "Joint Tenancy with the Right of Survivorship".  This type of joint property exists when you and two or more people hold property in such a way that upon the death, the survivors  automatically inherit the property interest of the deceased.

Continue reading "It's All About Joint Title in Michigan | Joint Tenancy Explained" »

In Estate Planning Gone Wrong Part 1, I discussed the mistake of people trying to do their estate plan on their own without the aid of a Michigan estate planning lawyer.  In Estate Planning Gone Wrong Part 2 I discussed the second major issue we see at our Oakland county estate planning law firm, that being people not updating their estate plans.

The third major issue we see with people who either have not done an estate plan or have done an estate plan not at our firm is that people are failing to plan for incapacity.

This problem is also at the heart of the trust vs. will debate where having a living trust based estate plan prepared by a Michigan estate planning lawyer probably makes more sense then just having a Michigan will based estate plan.  The reason is that a last will and testament does not have any planning for incapacity.  Incapacity could take the form of brain injuries, strokes, Alzheimer's, and other issues not including death.  With our population living longer and longer there is a greater chance than ever that you will spend at least some time legally incapacitated.  Doesn't it make sense to take this into account in your estate planning?

The way to plan for incapacity is through executing and annually reviewing a living trust based estate plan with effective powers of attorney for health care and financial decisions.  All prepared by a Michigan estate planning lawyer.

Christopher J. Berry, Esq.
Metro Detroit Estate Planning Lawyer