Michigan Estate Planning Lawyer Blog

It seems that the Michael Jackson Estate story will continue on for a while. Just within the last few hours the WSJ is reporting that a Last Will and Testament drafted in 2002 for Michael Jackson may be the controlling document in Michael Jackson's Estate. Read more here: Jackson Will From 2002 In Spotlight.

Apparently the will divides his estate between his mother, 3 children, and one or more charities.  The will named lawyer John Branca and music executive John McClain as executors.  They will be the ones administering the will for the estate.  According to the article, it is still unclear who will be appointed guardian of his children, or if it was even mentioned in the will.

What is clear is that this will be a mess moving forward because of what appears to be shoddy estate planning.

Christopher J. Berry, Esq., A Michigan Probate Lawyer, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Elder Law, Estate Administration and Michigan Probate.

It turns out that there might be a last will and testament for Michael Jackson after all. In an AP article, Michael Jackson's family attorney has said that a last will and testament has surface and will be presented to the court.  You can read more here: Jackson Family Lawyer Says Will Has Surfaced

This late developing news certainly makes things interesting considering Michael Jackson's mother just filed a petition to become administrator of Michael Jackson's estate.

I look forward to seeing the last will and testament, since it will be part of the court case and available as a public record.

The key questions now are:

• Who is named as personal representative or executor under Michael Jackson's last will and testament?
• Has he provided for who will be the guardians of his children?
• Will he estate be liquid enough to pay his numerous debts?

We shall see.  What we already know is that most likely Michael Jackson was not as prepared as he should have been if just now they are discovering his will and estate planning documents.

-Christopher J. Berry, Esq., A Michigan Estate Planning Lawyer, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Elder Law, Estate Administration and Michigan Probate.

According to the Associated Press, Michael Jackson, "The King of Pop", did not have a last will and testament. This leads me to believe that he didn't have any type of trust or guardianship planning done either. I find this ridiculous if no Will surfaces.

If you have minor children, you need to name guardians for your children, regardless of the size of the estate.

According to court filings in California, Michal Jackson's parents, Katherine and Joe have petitioned the court to become temporary guardians of his children and executor of his estate.

You can read more of the AP story on Michael Jackson's estate here: Parents file papers to administer Jackson estate.

Christopher J. Berry, Esq., A Michigan Probate Litigation Attorney, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Elder Law, Estate Administration and Michigan Probate.

The loss of a loved one, especially a spouse can be a devastating, emotional experience. Added to the stresses at the time are the estate administration legal aspects of what needs to be done. Unfortunately, avoiding costly Michigan estate administration mistakes needs to be addressed at this time as well. Sitting down with a caring and compassionate Michigan estate planning attorney is important to protect the surviving spouse and to ensure that the surviving spouse protects his or her assets for his or her enjoyment.

When sitting down to handle the administration of the deceased's assets, one area that needs to be addressed immediately is "disclaimers". Should the surviving spouse disclaim any property so that it flows through to the next beneficiary. There can be huge tax implications to this. Additionally, we need to check to see how any trusts are funded, especially if the initial estate plan contemplated planning for the Federal Estate Tax.

Next property issues must be analyzed. How were the deceased's spouses assets owned? Will their have to be a probate, or were assets jointly owned or in trust? Hiring an estate planning or Michigan estate administration lawyer can help you walk through these important questions in a timely manner.

After a period of time, one of the issues that pops up for a surviving spouse is remarriage. Remarriage can have drastic effects on the distribution of assets to children. This is one the most common reasons that children are "accidentally" disinherited.

Christopher J. Berry, Esq., A Michigan Elder Law Lawyer, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Elder Law, Michgian Probate.

Whether you are the personal representative for an estate in Michigan or you are a beneficiary looking to challenge the personal representative, there are some key questions when it comes time for the accounting. These are especially important if you are a personal representative or executor and are looking to avoid a nasty drawn out Michigan probate litigation case.

First, look to the expenses and fees. Are they reasonable? Reasonableness is a gray area, but ask yourself if it passes the smell test.

Another area of interest is whether the personal representative or Michigan executor has provided verification of funds from any of the institutions where funds were deposited.

Third, look at the Michigan probate accounting as a whole. Is it understandable, clear, unambiguous? Does the probate accounting have all the necessary requirements of Michigan statute, Michigan case law, and court form?

Fourth, look at the timing of the filing of the Michigan probate accounting. There are rather strict time requirements to file an accounting.

These are just a few things to keep in mind as you navigate the Michigan probate process and try to avoid any Metro-Detroit probate litigation.

Christopher J. Berry, Esq., A Michigan Probate Litigation Attorney, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Elder Law, Estate Administration and Michigan Probate.

Alzheimer's Disease is a progressive, degenerative brain disease. One of the issues when a loved one has Alzheimer's Disease is the prevention of injury around the house.

Cari Nierenberg at ABC has a post with expert tips on how to adapt your home for a loved one with Alzheimer's Disease. It is worth a read if you have a loved one affected. Read it here: Making Your Home Safer for a Loved One with Alzheimer's.

The first step?  "Increasing the lighting around the home because at mid stage Alzheimer's patients need 50 percent more light to see at the same level of acuity..."

Christopher J. Berry, Esq., A Bloomfield Hills Elder Law Attorney, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Longterm Care Planning, and Medicaid Planning.

The new Michigan Trust Code is now official. The Michigan Trust Code will take effect on April 1, 2010. The new Michigan Code will displace Article VII of EPIC as well as touching other areas of EPIC. Attorney Mark K. Harder has an overview of the Michigan Trust Code at the Michigan State Bar Website.

-Christopher J. Berry, Esq., a Michigan Wills and Trusts Attorney, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Elder Law, and Probate.

Did you know that over 50% of Americans do not have a Last Will and Testament? This according to a 2008 Findlaw.com survey. A Last Will and Testament is one of the most important estate planning documents, especially if you have minor children.  The Will lays out not only how your assets should be distributed in Michigan probate court, but also who will be the guardians of your children.

Michael Doran at Keystone Financial Services has a newsletter on this very topic. Read it here: Estate of Emergency.

Christopher J. Berry, Esq., A Michigan Probate Litigation Attorney, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Elder Law, Michgian Probate.

Have you or your parents or loved ones been invited to a free estate planning seminar with dinner provided? If you have, be careful. There are quite a few trust-mill lunch and dinner seminars going around.

Things to watch out for include estate planning seminars that are not taught by actual attorneys, but by annuity salesmen. Also, be mindful of seminars where they quote you a price for a living trust up front. For example "$2,295 and updates for the rest of your life!".

Living trusts are not one size fits all documents. As a Michigan living trust attorney, there is no way I could quote you a fee for planning without sitting down with you to discover what your goals are.

For further proof, take a look at this out of state, slightly dated article on how these borderline scams work. Quoting the article:

"the companies sponsor free estate-planning seminars for seniors as a way 'to learn about the senior's assets and manipulate them into purchasing manifestly inappropriate financial investments for seniors, namely annuities.' "

You can read the article here.

Christopher J. Berry, Esq., A Oakland County Wills and Trusts Attorney, is a Partner with Witzke Berry PLLC, which practices in the areas of Michigan Estate Planning, Elder Law, and Michigan Probate.

I stumbled upon an old story about how the heirs sued because of the use of do-it-yourself estate planning software.  In this case the software was Quicken Willmaker or Quicken Family Lawyer, but it could be Legalzoom, or Suze Orman's Trust Kit, or any other of the will and trust in a box products.

What happened was that an insurance agent was sued for "unauthorized practice of law" when he used the Quicken Willmaker software to create a will for a 91 year old woman. 

This is just another case where the Nolo's, Quicken Willmaker's, Suze Orman Trust Kit's, and Legalzooms of the world have caused more problems then good as people look to create their own estate plans.  This shows why many state bar's, like Texas, have tried to ban these products because they in the end harm the consumer.

You can read the article at CNET.

Christopher J. Berry, Esq., A Michigan Wills and Trusts Attorney, is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Elder Law, Probate.

photo from www.gamerswithjobs.com

By the way, here are some excerpts from the case:

Continue reading "Heirs Sue Over Use of Will-Making Software | More Do-It-Yourself Estate Planning Gone Wrong" »

An estate planning lawyer in New Jersey, Victor Medina, has a short, insightful post regarding the advantages of a living trust based estate plan versus a last will and testament based estate plan.  You can read it at the New Jersey Estate Planning website.

His answer, "Whether you have a will or a living trust doesn't matter if the plan isn't tailored to meet your goals!"  I agree!

-Christopher J. Berry, Esq.
Bloomfield Hills Will and Trust Attorney

People love their pets.  According to a bankrate.com article, Americans spent more than $43.2 billion on their pets in 2008.  With all that spending their are two areas that are often overlooked.  Both, according to the article, are affordable for most families and can even save your pet's life.

The two key planning tools are pet insurance and pet trusts.  Both can save your precious pet's life.  Pet insurance helps pay for the health care costs that can arise if your pet is injured or has health issues.  This prevents the all to common occurrence of pets being euthanized  due to a lack of money.

The other main planning tool, and the one our pet planning law firm can assist with, is including your pet in your estate plan with a pet trust.  A Michigan pet trust can set aside money that is protected for the use taking care of your pet after you pass with a caretaker or multiple care takers.  Michigan is one of the many states that allow for pet trusts.

One of the major benefits of a Michigan pet trust, is that a trustee can go to court to ask for a successor care taker if the pet is not being taken care of the way the trust outlines.

You can read the rest of the bankrate.com article here.  Also mentioned is a Pet Trust planning colleague, Danny Meek of Indiana.  Read Danny Meek's pet trust law blog.

You can download our Michigan pet trust brochure.

Christopher J. Berry, Esq. is a Partner with Witzke Berry PLLC, which practices in the areas of Estate Planning, Elder Law, Probate, and Michigan Pet Trusts.

photo courtesy of Alan Bruce

Many parents want to help their children through tough spots, it is common to see parents loan or gift amounts of money to their children.  Unfortunately, this can cause disputes and conflicts with the other siblings if the gifts or loans were not addressed in the parent's estate plans or if their are misunderstandings of the intent. 

Elderlawansers.com has an article on this topic which you can read here.

As a Michigan wills and trusts attorney, I agree with the heart of the article, which is that the estate plan should make clear the parent's intent regarding the gifts or loans.  For example, language outlining that a gift to one of the children does not reduce that child's overall share. 

The key is that the documents must be clear and provide guidance as to whether the transaction was a gift or loan and whether it should be considered an advancement or not.

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

Michigan has a small estate proceeding that can avoid the lengthy court proceeding typical of a Michigan probate proceeding.  Under MCL 700.3982, if the balance does not exceed the indexed amount for the year, then the estate is eligible for the small estate process.

Under the small estate procedure, there is no need to appoint a fiduciary or provide the usual notices, inventories and accounting of a typical Michigan probate.  This streamlined process can typically administer the Michigan estate within a day.

In addition to the Michigan small estate procedure, there are other ways to avoid a Michigan probate through using allowances and personal property rules.

-Christopher J. Berry, Esq.
Metro-Detroit Probate Attorney

Is a Michigan probate always necessary?  The answer is no.  A Michigan probate is not necessary if all of the deceased's assets pass through joint ownership, direct transfers or through trust.  Probate is just one of the ways that assets can pass at death, it is not the only way. 

For example, a husband and wife own a joint bank account.  The husband passes away.  By title of the account, the bank account now is solely the wife's.  No probate necessary.  However, say the wife does nothing with the account, does not put into a revocable living trust, and passes away.  Well, now title is in her name alone, and now her heirs must most likely open up a Michigan probate administration to transfer the asset from her estate to a beneficiary.  So, through joint ownership, you can avoid probate on the first death.  But keep in mind two things:

1.   On the second death if nothing is done, there will be a probate, and 
   
2. Naming accounts or real estate jointly with someone other than your spouse can open a whole can of worms.  Sure you are avoiding probate by naming your daughter on title to your house or jointly on your savings account, but you could be opening yourself up to lawsuits, divorces, creditor actions and bad acts by the person you just named jointly, not to mention unintended tax consequences, such as a loss of a step up in basis.

The same principals apply to IRA's and life insurance.  If there is a named beneficiary, then the account will avoid probate.  If there is not a named beneficiary, then the asset must be probated to transfer the assets to the heirs.

Trusts, including revocable living trusts, are the third way assets may be transferred to avoid probate.  Typically, after reviewing the pros and cons of setting up a trust, most clients prefer to rely on the properly funded living trust to pass their assets to the next generation, versus relying on probate or the other methods.

As you see, I haven't mentioned the use of a will or last will and testament, to avoid probate.  The reason for this is that a Michigan last will and testament does not avoid probate, it merely gives instructions to the Michigan probate court on how to administer your estate in the Michigan probate system.  A will is your ticket to probate, it doesn't avoid probate.

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

The loss of a loved one is a difficult, and stressful situation.  On top of the emotional turmoil, the assets and accounts of the loved one must be wrapped up and transferred out of the deceased's name.  There are easy, inexpensive as well as difficult and costly ways to administer one's Michigan estate.

The easiest and least costly way to administer an estate is to to make sure that there is a fully funded revocable living trust prior to passing.  This leads to a quick administration by the trustee to transfer the assets where they are required, by trust, to go.

On the other hands, a more difficult, time consuming, and costly way to administer an estate is just have a last will and testament that goes through probate, or even worse, no last will and testament at all.

While we handle Michigan probate matters and Michigan estate administrations all the time for our clients, our clients find that the Michigan probate process can be a frustrating endeavor.  We try as much as possible to make the process as painless and stress free as possible, but we are confined by the Michigan probate court process and Michigan probate code, called EPIC.  You must understand that there are certain fees and costs of a Michigan probate along with a certain time frame.

As Michigan probate lawyers, we try our best to help our clients navigate the process as quickly and cost effectively as possible while handling a Michigan estate administration.

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

A QTIP, or qualified terminable interest property trust, is a type of trust that limits the surviving spouse's access to and control of the trust property.  What happens is that the spouse has direct access to any income from the trust assets for life, but the trust's principal is left to someone else, typically the children.  The QTIP trust controls not only the next beneficiary, but also who the following beneficiaries are, all the while providing for the surviving spouse and potentially providing marital deduction planning as well.

Here are some scenrio's where a QTIP trust may be right for you:

• Concerned about surviving spouse remarrying and then providing assets to the new spouse (marrying the pool boy or secretary).
• Concerned abour the surviving spouse benefting someone other than the children (disinherting the children).
• Concerns over creditor attacks against the surving spouse.
• Concerns that the surving spouse may be vulnerable to poor financial decisions.

The QTIP trust is a great trust to not only plan for the marital deduction, but also provide spousal protection and ensure that your assets remain in the bloodline.

-Christopher J. Berry, Esq.
Bloomfield Hills Wills and Trusts Lawyer

"Even middle-class folks can benefit from trusts when it comes to estate planning.  That's because children under the age of 18 can't directly inherit more than a small amount of money," and when they reach 18 they can inherit everything, which is a scary proposition when you think about your college aged child inheriting a lump some of money.

The above quote was from an article in the WSJ, which you can read here.

The article goes on to talk about how setting up a revocable living trust as a better alternative that allows them to exert more control over their assets once they are gone.  As, Michigan estate planning attorneys who work with living trusts on a daily basis, one of the things we often see is that our clients like to utilize revocable living trusts to delay when their children inherit their money.  For example, instead of inheriting outright at age 18, maybe a distribution of 1/3 at 25, 1/3 at 30, and remainder at 35 makes more sense since the child will be more mature and able to handle the money at later ages.

Planning for parents with minor or college age children is one of the focuses of our Michigan estate planning law firm.  Give us a call if you have any questions.

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

I was reading an article and Trusts & Estates that talked about how personal estate planning is.  As a Michigan estate planning attorney, I couldn't agree more.  The best estate planning is tailored to the personal details of client and their family.  Estate planning is not one size fits all. 

The clients I most enjoy working with are the ones that open up to me and open the door to their personal lives.When I am able to make the clients comfortable and they open up more, I think I am able to provide a better service to them and it is reflected not only in their documents, but also my suggestions for legal solutions to their goals and desires.  By no means am I putting this responsibility on the clients, it is my responsibility as the professional to get the client to feel comfortable working with me, as a professional.

I need an intimate knowledge of their family dynamic to truly be able to tailor a legal plan that will fulfill their needs.  If a client is not open and comfortable, they may not bring up an event, fact, family member, that could trigger an entirely different solution set.  For example, does one of the proposed beneficiaries have a drug, or alcohol problem?  Is one of the beneficiaries going through a divorce?  Do some of the beneficiaries not get along?

I take the responsibility of making the client feel comfortable with me very seriously, as should any estate planning lawyer.  With out the necessary rapport with clients, we are no better than the legalzooms, Quicken Willmakers, or other internet drafting solution where you enter in the number of beneficiaries, and names and it drafts the estate plan for you based on faceless, impersonal facts.

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

Michigan Estate planning often does not get the attention it deserves.  It is more exciting to talk about saving for your kids education, purchasing a second home, or deciding how to retire.  Unfortunately, ignoring what happens to your affairs when you pass away will not prevent the day from happening, regardless of the size of your estate.

The New York times had an interesting article on the matter, which you can read here.

Two important issues include:

• Last Will and Testament.  Everyone should have a Last Will and Testament.  Your Will is a document that names guardians for dependent, minor children and can provide instructions to the probate court on how to distribute your assets.
• Advanced Medical Directives.  Anyone over the age 18 in Michigan NEEDS to have prepare a patient advocate designation to appoint someone to make medical decisions if they are incapacitated.  Think of the Terri Schiavo case down in Florida if you need any reminder of what can happen if you don't do this planning.

On top of these documents, other things to think about in estate planning are Trusts, Financial Powers of Attorney, and HIPAA Authorizations.  Also, don't forget to look at how all of your assets are titled.

There is quite a bit that goes into preparing a comprehensive Michigan estate plan.  The sooner you start the process the better of you and your loved ones will be if something were to happen.

-Christopher J. Berry, Esq.
Bloomfield Hills Trust and Estate Planning Laywer

Most of our Michigan probate clients who are typically the personal representative or executor in Michigan probate matters opt for an unsupervised informal administration of the deceased's estate.

Typically we will file a Sworn Statement to Close the Unsupervised Administration with the court.  We cannot file the Sworn Statement until a few conditions are met and a 5 month period from the appointment of the  personal representative or executor.

The other main way an unsupervised Michigan probate estate is closed is by using a Petition for Adjudication of Testacy and Complete Estate Settlement.  Opting for this procedure of closing the estate can be more time consuming and has more conditions and requirements.

-Christopher J. Berry, Esq.
Michigan Probate Attorney