Michigan Estate Planning Lawyer Blog

Both of us Michigan estate planning lawyers at Witzke Berry PLLC were Michigan State grads.

So, GO STATE, good luck at the Final Four.

• -Christopher J. Berry, Esq.

Michigan Estate Planning Lawyer

Yesterday at the Michigan Estate Planning Lawyer Blog I discussed two things to look for in your estate plan in this environment of a $3.5 million Federal Estate Tax Exemption and a down economy.  You can read that post here: Michigan Estate Planning Lawyer Blog.

Today we are going to cover three more items to consider in this estate planning legal environment

This down economy and economic crisis can increased the risk of bankruptcy, foreclosure, divorce, and law suits.  On top of this, your beneficiaries irresponsibility in financial management may also reveal it self since times are tight.  Now is a time to make sure that the spendthrift provisions in your revocable living trust (assuming you have a revocable living trust and want to protect your beneficiaries) are iron clad.

The next item to consider with the increase of the Federal Exemption is the need to rebalance trusts that try to minimize the effect of the Federal Estate Tax.  Typically a husband and wife will have a separate trust.  The goal being to stuff each trust up to the Federal Exemption amount, which this year is $3.5million.  Last year the exemption amount was only $2million, so there may be a need to rebalance the trusts.

One bright spot of the economic crisis is the opportunity for gifting.  Gifting is a way to reduce an estate value estate and gift tax free.   This year $13,000 can be passed gift tax free.  This is an increase of $1000 from last year.  Couple this increase with the 50% loss of value for many peoples portfolio and we now have a great opportunity to gift.

These are turbulent times for everyone.  You should sit down with your Michigan estate planning attorney to see how these changing times have effect your estate plan.

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

The national economy, and Michigan specifically have had a difficult economic ride.  Many people's portfolios are down over 50% in the last year or two.  Couple this with jump in the Federal Estate Tax Exclusion amount from $2million to $3.5million and you have a drastic change in circumstances from when many people originally had their estate plans drafted by a Michigan estate planning lawyer.

In light of these changes, many people could benefit from reviewing their estate plans.

First, people should look to simplify their Michigan estate plans if the Federal estate tax is of no concern.  Because peoples portfolios have taken nearly 50% hits along with estate tax exemption increasing by 75%, many people who once had an estate tax concern no longer do.  With Michigan estate plans that plan for the federal estate tax, surviving spouses could incur unnecessary expenses of funding and administering irrevocable trusts of the deceased. This is a prime opportunity to utilize simpler joint-trusts for married couples.

The other effect this down economy has is in regards to general bequests and gifts.  Many individuals in their estate plans have made requests of specific dollar amounts going to charities or individuals.  The amounts people chose when their portfolios were larger may not be appropriate any more.  For example, a gift of $25,000 in an estate plan to the Humane Society would be a larger percentage of a total estate now that people's total estates have decreased so much in the past two years.  This leaves less to the remainder beneficiaries.

These are two things to look for in this turbulent economic time coupled with a growing Federal Estate Tax exemption.  Tomorrow we will look at other things to look for that may require an update to your Michigan estate plan.

-Christopher J. Berry, Esq.
Oakland County Wills and Trusts Lawyer

As a Michigan estate planning lawyer, I am not worried about the effect of the Legalzoom, Suze Orman Trust-in-a-box, or Quicken Willmakers of the world.  What I do worry about is the effect of those products on the general public.  Our Michigan estate planning office has seen far too many people using these cheap products, trying to substitute cheap forms for experienced legal estate planning advice of attorneys, with often times, poor consequences.

Those consequences include, assets going through a Michigan probate, that shouldn't, disqualifying special needs children from governmental benefits, unintended distributions of assets to individuals not planned for and on and on and on.  Why leave it up to chance that your heirs may have to clean up your mess because you decided to save a few bucks?

There are times where having no plan at all and relying on the Michigan laws of intestacy are better than relying on these cheap forms.

The blog by the Los Angeles Estate Planning Lawyers of the Proviso Law firm had an interesting post on this topic.  You can read it here : Los Angeles Estate Planning Lawyer.

-Christopher J. Berry, Esq.
Bloomfield Hills Estate Planning Lawyer

At the Michigan Estate Planning Lawyer Blog, I have posted a few times that due to this down economy, it is a prime time to review your estate plan.  Well, The New York times blog has an interesting article on the topic as well.

Take a minute to read "Smaller Though It May Be, It's Time to Look at the Estate" by Paul Sullivan at the New York Times.

Sullivan writes:

But estate planning is not primarily about avoiding a tax that few have been subject to since it was instituted in 1916. The primary goal has always been how to bequeath what you have to the heirs you picked. And if handled wrongly, wills can become a vehicle that destroys families.

"As the economy gets worse, children will be looking at that inheritance," said Les Kotzer, an attorney and author of "Where There's an Inheritance: Stories From the World of Two Wills Lawyers" (Continental Atlantic Publications). "They might start looking at the house as their entitlement. I have kids calling me and asking me, 'When do I get my inheritance?' "

The biggest issue, given both the recession and the flux in federal estate tax laws, is whether wills already drawn up still fulfill their intent.

Our Michigan Estate Planning and Michigan Probate Law office has seen a rise of heirs thinking about challenging their inheritance or lack of inheritance.  If you have an estate plan, now is the time to review your estate plan to ensure it is air (heir, sorry bad pun) tight in this down economy as people become more desperate and litigious.

-Christopher J. Berry, Esq.
Michigan Wills, Trusts, and Estate Planning Lawyer

One of the items we review with our clients are the beneficiaries on our clients financial accounts.  This is especially important for clients with Revocable Living Trusts.  If your beneficiaries are named incorrectly it can have drastic and costly effects on your Michigan estate plan.

Money magazine recently had an article on the 5 Things to Know about Naming Beneficiaries.  Their list included:

1. Your will has no jurisdiction
2. You can-and should- name a runner-up.
3. Retirement accounts have quirky inheritance rules.
4. Naming a minor is a quick ticket to Michigan probate.
5. Changing a beneficiary is easier than changing the filter in your coffee pot.

If you have any questions on the article or what any of the items mean, contact us to review your beneficiary designations.

-Christopher J. Berry, Esq.
Bloomfield Hills Estate Planning Lawyer

As a Michigan estate planning lawyer, I am a little worried whenever I hear someone is using Willmaker, Suze Orman Living Trust, Legalzoom, or any of the other Last Will and Testament or Living Trust document preparation software. 

Well, today, I was watching an email exchange between estate planning lawyers and one of the lawyers offered a personal story about meeting with a client and presented a will prepared by Willmaker.

I can talk to you all day about how Michigan estate planning is more than just preparing documents, but reviewing goals, family planning, beneficiary planning, making estate administration easier, etc. 

Well, this attorney found the "Holy Grail" reason for not using Willmaker software (or really any of the others).  When he reviewed the Will, it wasn't a validly executed Will based off state law because the document that purported to be a WIll did not have the necessary execution requirements.  This is a fatal flaw for the person who thought they had everything "take care of."

In other words, IT WASN'T A WILL, like the client thought.  Pretty scary to think about. 

Don't think that using Willmaker, Legalzoom, Suze Orman Trusts, is really benefiting your loved ones. You could be leaving them a legal mess when you pass and your "estate plan" is put to the test.

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

What does Michigan estate planning and Michigan probate have to do with Britney Spears?  Well, the probate lawyers for Britney Spears are set to appear before a probate Judge this Friday to respond by court papers by Spears' lawyers, get this, comparing the conservatorship overseeing her affairs to the forced labor camps portrayed in the Russian novel "The Gulag Archipelago."

You can read more on this story here.

-Christopher J. Berry, Esq.
Michigan Probate Lawyer

Financial "guru" and talking head Jim Cramer appeared on the Daily Show with Jon Stewart last night and took a well deserved beating.  Up next, if I had my druthers, Suze Orman and her ridiculous living trusts in a box.  Why people listen to these over generalizing marketing mavens is beyond me.

You can read about the Jon Stewart vs. Jim Cramer spat on Comedy Central here.

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

Reason number 2312334 why a Michigan living trust based Michigan estate plan is better than a Michigan last will and testament based estate plan 9 times out of 10.  When you file an inventory in probate court, in this case Wayne County Probate court, the assets on the inventory are used to calculate the inventory fee.  This fee is a percentage of all assets going through the probate process.

This fee can be upwards of $1000+.  Quite a price to pay to either not have a Michigan living trust or have a Michigan living trust but fail to fund it properly. 

Our office has a system to help our clients fund their trust.  We call our program Foundations.  It is an annual membership program where we review our clients current situations, including funding, and make whatever tweaks are necessary to their estate plan.  Similar to a check up at the dentist, or an oil change for your car.

-Christopher J. Berry, Esq.
Metro Detroit Estate Planning  and Probate Lawyer

We have our upcoming Michigan Estate Planning workshop schedule posted on our website. 
Topics we will be covering include:

• Estate Planning For Parents
• Planning for Pets | Pet Trusts and Equine Law
• Client Only Trust Funding Workshop
• Family Love Letter
• Elder Law and Medicaid Planning
• Alzheimer's and Dementia Workshop

You can learn more and register by visiting our witzkeberry.com website.

-Christopher J. Berry, Esq.
Oakland County Will and Trust Lawyer

Currently you can download a free estate planning kit from the American Heart Association.  They are calling their download "Matters of the Heart, A Will and Estate Planning Kit."

You can visit the American Heart Association and download your free will and estate planning kit here.

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

I was reviewing my materials for an upcoming presentation.  One of the topics that I will touch on is why people seek out Michigan estate planning lawyers in the first place.  What are the thoughts, concerns and considerations that most people have in terms of their estate planning?  Some questions to ask are:

1) Do you have a plan in place to manage your care if you were incapacitated?
2) If you have minor children, what would happen to them if you died?
3) Whom do you want to take care of their needs?
4) Should your children receive their full inheritances at age 18?
5) Will some heirs need help managing large sums of money?
6) Are there any family members with special needs?

-Christopher J. Berry, Esq.
Metro Detroit Wills, Trusts, and Estate Planning Lawyer

Apparently, there is one group of people who are paying their bills.  Those people are the dead.  The New York Times had an interesting article talking about how there is an expanding niche of debt collection.  Collecting from the dead.

Generally, In Michigan survivors are not required to pay a dead relative's bills from their own assets.  That said, creditors can seek payment from the estate or the property inherited from the deceased.

This isn't stopping the debt collection agencies.  They are teaching their new hires "emphatic active listening" and then praying upon the sentiment and lack of legal knowledge of the deceased's relatives.

Many survivors are shock and appalled at this practice.  But too many are not aware of their legal rights in not paying the debts of the deceased.  From the article:

One widow wrote that a collector "was so nice to me, even when I could only pay $5 a month a few times." Saying that money was "so tight" after her husband died, she added: "It was very hard for me, and to get a job at my age. Thank you."

You can read the entire article here.

Please, consult a Michigan probate or Michigan estate administration attorney if you are getting calls to pay the debt of a deceased relative before you send any money in.

-Christopher J. Berry, Esq.
Michigan Probate Lawyer | Michigan Estate Administration Lawyer

Most beneficiaries of IRA can choose not to take their minimum required distribution (MRD) in 2009, thanks to a recently enacted law. 

This new law applies to beneficiaries of ROTH IRA's, 401(a), 401(k), and 403(b) plans.  The goal of the law is to help people save as much money as possible in this economy.

If you have any questions on how this works either contact your plan administer or our office and we'd be happy to assist you.

-Christopher J. Berry, Esq.
Michigan Wills and Trusts Lawyer | Visit http://themichiganlawyerblog.com for my thoughts on Michigan news and legal happenings.

Many people who contact us or who are shopping for a Michigan estate planning lawyer ask us "what is the cost to do an estate plan?"  Like a good attorney, my response usually is "it depends".  Unlike the "chop shop" trust mill types, we don't have a set fee for a trust or will and try to shoe horn every situation into that document.  We sit down with our clients in an initial consultation and work together to learn their goals and apply our knowledge of the law to come up with a unique estate plan tailored to their individual needs.

So, when people call me and ask "what is the cost to do an estate plan?", my response when not using the good lawyer "it depends" and when they have quoted a price from either their friend who is the criminal lawyer but does wills, the financial salesmen who pitch a trust at a seminar, the general practice attorney that is part of their Ford/GM/Chrysler legal plan or documents they bought out of a box, my response is "probably more expensive then them."

The reason for this is we do not want price shoppers as clients.  What we do as a law firm that practices entirely estate planning is very different than all those other sources of "estate planning" I already mentioned.  What they do is document preparation.  That is not estate planning. 

There is so much more too estate planning then just filling in the blanks on a word document. 

How will you title your assets?  Is your trust funded properly?  Have you protected your spouse from creditors?  Have you provided a plan for your pets?  What is your business sucession plan?  Have you protected your children from the income tax hit of your house?  Have you avoided making mistakes with your IRA/401k where they are double taxed?  Is your life insurance proceeds going directly to your children?  Is your life insurance removed from your estate so you are not giving 45% of the life insurance to the U.S. Government? Do I have a QTIP trust for my spouse?  Are my children protected from creditors, divorce, IRS, and bankruptcy?  Have I avoided risking my children going into foster care or have I just named guardians in my will?  Ask your general practioner attorney, your trust in a box, or downloaded form those questions.

I've reviewed too many crummy wills, trusts, and estate plans.  We've had to probate too many screwed up estate plans.  Why would you short change your heirs by not doing your estate planning correctly with lawyers who focus only on Michigan estate planning.  You can either do it right the first time, or you'll create a mess for your loved ones.

If you've found someone to put together a revocable living trust, pet trust, will, power of attorney, patient advocate, HIPAA documentation, funded your trust, etc for $500, more power to you.  Good luck, but I hope your heirs contact us when it comes time for administration time, my bet is there will be unplanned consequences.

You get what you pay for...


-Christopher J. Berry, Esq.
Michigan Wills and Trusts Lawyer

In Michigan, how a special needs trust is funded determines what type of special needs trust needs to be created.  A special needs trust is created to ensure that loved ones receive needed governmental benefits while protecting assets that can be used to improve quality of life.

If a special needs trust is going to be funded by a family member, friend either through gifting or an estate plan, a third party special needs trust can be created.

The second type of special needs trust, called a first person special needs trust, is created by the person who wishes to receive governmental benefits.

Special needs trusts have specific rules depending on which type of special needs trust is used, that is why it is important to speak with a Michigan special needs trust lawyer who is familiar with the area of law.

-Christopher J. Berry, Esq.
Michigan Wills and Trusts Attorney

Michigan is currently in a tough economy, people look at their 401k's or other investments and wonder where their money has went.  People are looking for certainty in their investments.   You cannot find that in your IRA's or 401k's right now.

One place for certainty is investing in that estate planning that you have put off.   Maybe it is time to sit down with your Michigan estate planning attorney and talk about putting together a will, living trust, power of attorney, patient advocate, or living will.

The money spent on Michigan estate planning will not lose value due to economic times.  Take this opportunity to exert some control in you financial situation and put together your estate plan that will protect your children if you were incapacitated or protect your spouse if you passed away.

-Christopher J. Berry, Esq.
Michigan Wills and Trusts Lawyer

Many Michigan pet owners, especially horse owners, consider their pet to be a part of their family.  With that said, what happens if you pass away or become incapacitated with out making advanced plans for your pet?  Your pet could end like the 500,000 other animals that are killed in shelters and veterinary offices each year after an owner dies or becomes incapacitated.

However, you can protect your pet or horse by including your pet in your Michigan estate planning by creating a pet trust.  Michigan law does not allow you to leave money directly to your pet, but it does allow you to leave money in trust for your pet.  This is a much better option then leaving money directly to someone with the "hope" that they will take care of your pet.

To learn more, we will be having a no cost seminar on "Planning for Pets | Pet Trusts and Equine Law"  at 6pm on Thursday April 23rd at the Witzke Berry PLLC Law Office.  Contact us at (248) 971-1700 to register or register online at www.witzkeberry.com.

-Christopher J. Berry, Esq.
Michigan Pet Trust Laywer