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Estate Planning for 2012
January 2, 2012
Filed under: Estate Planning,IRA Trust,Stretch IRA —
Christopher J. Berry | Estate & Elder Law Attorney @ 10:24 pm
Estate Planning is a great topic to disccuss in the new year, especially with your family in for the holidays.
One New Year’s resolution you could make is to have your Michigan estate plan reviewed, updated, or (GASP!) done for the first time. While it’s a great topic to discuss, many families avoid it. However, making sure everything you care about and everyone you loved is taken care of if something were to happen to you is vitally important.
In 2012, we’ve had ever changing tax laws and changes to the Michigan Trust Code in the last 3 years. In addiiton to the changes in law, many baby-boomers are starting to retire and need medical care. This means its even more important to review your estate plan and consider implementing a Life Care Plan.
One of the biggest changes we’ve seen in our practice and something that will play a large role in 2012 is planning for IRA’s. Our firm has developed the Standalone Retirement Plan Trust to help protect many people’s largest asset, their IRA or 401k. The IRA Trust, or Standalone Retirement Plant Trust is a great way to stretch IRA distributions for loved ones after you pass away.
2012 is here. Make a resoultion that isn’t just short term. Take some time to speak with a Michigan estate planning attorney
Attorney Christopher J. Berry is a Metro Detroit estate planning and elder law lawyer who helps families, seniors, veterans and business owners with their important legal needs. Oakland County estate planning lawyer, Christopher Berry is a partner in the Bloomfield Hills law firm of Witzke Berry PLLC. Mr. Berry practices in the areas of estate planning, business, probate, veterans benefits & Medicaid planning.
Whom to Trust? Factors in Choosing a Trustee for Your Trust
November 14, 2011
Filed under: Estate Planning —
Christopher J. Berry | Estate & Elder Law Attorney @ 8:05 pm
I was reading the latest Journal of Financial Service Professionals and I came across a great article listing six non-tax related issues to consider when selecting a trustee. When it comes to comprehensive estate planning, revocable living trusts are an important piece to the estate planning puzzle. Often times, our clients struggle with the idea of who to appoint to serve the important role of trustee. To assist our clients, here are three things to consider when selecting trustees for your Michigan revocable living trust.
- Legal Capacity- for a trustee to serve, they must have legal capacity. That means they must be at least 18 of age, so you can’t name your 16 year old son…not that you’d want to. Also you must consider the age of the person you are appointing, for example, if you appoint an older, senior individual will they be around to serve when the successor trustee provisions come into effect?
- Personal Attributes of the Trustee- This is one of the most important factors for deciding who will serve the role of trustee. Serving as a trustee is an honor, large responsibility, and not a game for beginners to play. A trustee must exhibit sound judgment, impartiality, financial ability, responsibility, integrity, and honesty. By selecting a trustee with the right attributes, you are going a long way in ensuring a smooth administration.
- Beneficiaries having Conflicting Interests- Oftentimes a trustee also serves the role of one of the beneficiaries. Is this putting the trustee in a difficult position with other siblings?
I hope you found this information beneficial. Those three out of the six factors to consider were the ones that I, as a Michigan estate planning attorney, run into on a daily basis.
Taking Charge of Your Assets With Estate Planning
October 30, 2011
Filed under: Estate Planning —
Christopher J. Berry | Estate & Elder Law Attorney @ 10:16 pm
The WSJ has an interesting article discussing estate planning that you can find here.
The article first discusses how the words “estate planning” have a tendancy to cause anxiety for a number of reasons. First estate planning means mulling over “scary events” (timely for a Haloween blog post!), such as incapacity and death. Secondly, estate planning involves important, yet at times akward conversations with family members, financial advisors, insurance brokers and estate planning lawyers.
But it’s worth the effort. Planning ahead means for one thing, you’re in control of your property if you pass away or are incapacitated.
According to the article, the biggest mistake people make is not having a plan at all. As a michigan estate planning attorney, I’d have to agree. If you don’t make a plan, the State of Michigan has a plan for you. It involves probate and intestacy.
Interesting article, check it out.
Attorney Christopher J. Berry is a Metro Detroit estate planning and elder law lawyer who helps families, seniors, veterans and business owners with their important legal needs. Oakland County estate planning lawyer, Christopher Berry is a partner in the Bloomfield Hills law firm of Witzke Berry PLLC. Mr. Berry practices in the areas of estate planning, business, probate, veterans benefits & Medicaid planning.
Avoiding Estate Planning? You’re Not Alone according to Study
September 27, 2011
I hear it from our estate planning clients every day, that they are happy to have the peace of mind that their estate planning affairs are in finally wrapped up. Many of our Michigan estate planning (wills, trusts, powers of attorney) clients feel that prior, to meeting with us, that estate planning is a looming task. But once we’ve completed the process and executed their wills and revocable living trusts, they have feelings of comfort and security.
According to a 2008 study by Thomson Reuters, only 40% of Americans currently have a last will and testament. A last will and testament is a document that provides instructions to the Michigan probate court on how to administer your estate. Understand that a will does not avoid probate, it only gives instructions to the probate court on administration. If you fail to have a will or living trust, then the state of Michigan will administer your estate by the laws of intestacy.
So why do so many people leave their affiars up to chance or the whims of the probate court?
Well according to an article at funeral.com, there are four main reasons.
First, estate planning in Michigan is a very detailed process. It is legally binding, attorneys are involved, there is an investment of financial resources and a number of complex decisions need to be made. All of these activities, along with people’s hesitation to contact a Michigan estate planning lawyer can lead to overwhelm and procrastination.
Next, the actual process of completing an estate plan can take a couple weeks. It is very easy to get distracted with the daily minutia of life, work, and tv and put off meeting with an estate planning attorney, spending time with the attorney so he or she can document your wishes and then executing your estate planning documents.
Sometimes estate planning has a hard time making it up your “to-do” list, and I understand. Generally, us estate planning attorneys, see clients more interested in estate planning when a child is born, when a loved one passes away, or if someone is suffering a serious illness. The difficult part, is that during these life changes and high times of stress, it is more difficult to complete the estate planning process due to the stresses caused by the life changes. It is much easier to go through the estate planning process during a time when its easier to focus on the estate planning itself.
The fourth reason that you may be procrastinating on your estate planning is that going through the estate planning process can raise questions that are difficult to answer or you don’t have a perfect answer. For example, one of the biggest hurdles for parents with young children is who to name as guardians of their minor children. The fear of making the wrong decision can keep people from making any decision at all. Keep in mind, that even though you may not have a perfect answer to who shall serve a particular role, the answer you have is better than the answer a judge or probate court who has no familiarity with your family has.
Are you procrastinating on your estate planning? The first step is to pick up the phone and call an estate planning lawyer to get the ball rolling. The first step is the hardest.
Attorney Christopher J. Berry is a Metro Detroit estate planning and elder law lawyer who helps families, seniors, veterans and business owners with their important legal needs. Oakland County estate planning lawyer, Christopher Berry is a partner in the Bloomfield Hills law firm of Witzke Berry PLLC. Mr. Berry practices in the areas of estate planning, business, probate, veterans benefits & Medicaid planning.
Millionaire’s Michigan Heirs get Their Inheritance after 92 Years
July 8, 2011
Filed under: Estate Planning —
Christopher J. Berry | Estate & Elder Law Attorney @ 2:33 pm
Ninety two years after the death of Willington R. Burt, a Saginaw lumber barron, his heirs will receive his $100 million estate. Mr. Burt had set up his estate plan so that his fortune would be withheld from his descendants until 21 years after the death of the last grandchild born in his lifetime.
The Saginaw news reports that Mr. Burt was one of the wealthiest men in America when he passed away on March 2nd, 1919.
You can read more here: Millionaire’s Heirs Get Inheritance after 92 Years.
Many of our estate planning clients set up their estates so that there are not outright distributions to children and family, but generally not to this level of delay.
Attorney Christopher J. Berry is a Metro Detroit estate planning and elder law lawyer who helps families, seniors, veterans and business owners with their important legal needs. Oakland County estate planning lawyer, Christopher Berry is a partner in the Bloomfield Hills law firm of Witzke Berry PLLC. Mr. Berry practices in the areas of estate planning, business, probate, veterans benefits & Medicaid planning.
Five Ways To Screw Up Your Revocable Living Trust
July 6, 2011
Filed under: Estate Planning —
Christopher J. Berry | Estate & Elder Law Attorney @ 1:57 am
There was a great post in Barron’s about five ways to bungle your revocable living trust. As a Michigan estate planning lawyer who regularly reviews living trusts prepared by other attorney’s, I see all kinds of issues, including those listed in the Barron’s article.
One of the first issues of many revocable living trusts we review as Michigan living trust lawyers would be that many revocable living trusts or trustees for the revocable living trusts keep faulty records. Most states require trustees to provide regular accountings to the beneficiaries and keeping comprehensive records is key. The price of not keeping accurate records could be a big lawsuit at the end of the day.
A second big ossue is a failure to diversify. Trustees may be tempted to sink a large chunck of assets into one asset. A good rule of thumb is that more than 10% of any portfolio in one asset is too much.
Another big issues is biased distributions. Trustees owe a fiduciary duty to the current beneficiaries and the remainder beneficiaries. All the beneficiaries must receive the distributions per the terms of the trust.
Another big issue is many trustees expecting a pay day at the end of the day. Many trustees think that because of the extrea work involved they are entitled to additional benefits outside of what the trust states.
The last major issue we see as Michigan estate planning attorneys is the false sense of safety many trustees feel because they may feel honored when taking on the role of trustee and not understanding the responsibilities. There is alot of liability in serving as a trustee and that much be understood.
Attorney Christopher J. Berry is a Metro Detroit estate planning and elder law lawyer who helps families, seniors, veterans and business owners with their important legal needs. Oakland County estate planning lawyer, Christopher Berry is a partner in the Bloomfield Hills law firm of Witzke Berry PLLC. Mr. Berry practices in the areas of estate planning, business, probate, veterans benefits & Medicaid planning.
Michigan Estate Planning Options
June 28, 2011
Filed under: Estate Planning,Life Insurance,Living Trust,Probate —
Christopher J. Berry | Estate & Elder Law Attorney @ 1:15 am
As a Michigan estate planning lawyer, I like to stay up on top of what other people are saying about Michigan estate planning. I stumbled upon a blog that discussed estate planning options in Michigan.
The estate planning blog discussed how each estate plan is unique for the person and family it is created for. The blog then goes on to talk about three methods on how property is distributed to heirs.
Well, in actuallity, there are four ways that assets are passed out of a deceased person’s name.
The first way is through joint ownership. Most married couples hold most of their property jointly, so that if one person passes away, the asset passes directly to the survivor.
The second way that assets passes out of a deceased person’s name would be beneficiary designation. For example, you name a beneficiary of your life insurance policy.
The third way, and the way most of our clients pass their property is through a trust based estate plan. Through a trust based estate plan a settlor can control the distirbution of their estate, plan for Federal Estate Taxes, and avoid probate.
Which brings us to the last way that an asset passes out of a decedant’s name and that would be through the Michigan probate process.
So, which is the right process for you or your family?
Attorney Christopher J. Berry is a Metro Detroit estate planning and elder law lawyer who helps families, seniors, veterans and business owners with their important legal needs. Oakland County estate planning lawyer, Christopher Berry is a partner in the Bloomfield Hills law firm of Witzke Berry PLLC. Mr. Berry practices in the areas of estate planning, business, probate, veterans benefits & Medicaid planning.
Michigan Medicaid Estate Recovery is Almost Here
June 17, 2011
Filed under: Elder Law,Estate Planning —
Christopher J. Berry | Estate & Elder Law Attorney @ 12:30 am
Michigan Medicaid estate recovery has been on the books since 2007 with Public Act 74, which was effective on September 30, 2007. Up until this point, Michigan has not administered the program.
As a Michigan elder attorney, I stay up to speed on legislation that effects my clients.
DHS released a recent update to their policy manual that put us Medicaid planning attorneys on notice, that they planned on administreing estate recovery starting July 1st.
Estate recovery stems from the federal government’s requirement that the state shall recover money that it paid for services from the services from the estates of Medicaid beneficiaries who have died. The state will only recover the amount Medicaid paid for a beneficiary.
An estate includes all property and assets that pass through probate cout.
Now more than ever it is important to talk to an elder law attorney who is familiar with Michigan estate recovery.
Attorney Christopher J. Berry is a Metro Detroit estate planning and elder law lawyer who helps families, seniors, veterans and business owners with their important legal needs. Oakland County estate planning lawyer, Christopher Berry is a partner in the Bloomfield Hills law firm of Witzke Berry PLLC. Mr. Berry practices in the areas of estate planning, business, probate, veterans benefits & Medicaid planning.
Michigan Estate Planning | Michigan Elder Law
June 15, 2011
Filed under: Elder Law,Estate Planning —
Christopher J. Berry | Estate & Elder Law Attorney @ 12:19 am
As a Michigan elder law and estate planning lawyer, I draft elder law focused estate plans that encompass transferring assets to your heirs with the least amount of taxes, court costs and legal fees possible, while at the same time protecting those assets from the costs of long-term care. Trusts are often preferred over wills because they are private documents that avoid the cost and duration of a court proceeding, called probate, after death.
To ascertain the best elder law estate plan for a client, there are four major steps.
The first key is to understand the family dynamics. Many questions are asked. How old are you? How is your health? Is this a second marriage? How does everyone in the family get along? Is anyone estranged and, if so, why? Are any of the beneficiaries disabled and on government benefits? Are there any deceased children, and if so, are there any surviving grandchildren? Do you want to transfer assets on death to your children in a lump sum or do you want to exert more control over the distribution of the inheritance? Sometimes clients find these types of questions intrusive, but without such information, an elder law estate plan is not tailored to your life.
The second step is to review any current estate planning documents such as a will, trust, power of attorney, health-care proxy and living will to see if the plan is up to date legally and whether it meets the client’s goals. Again, questions must be asked. Are you a U.S. citizen (this is important to determine estate tax liability)? Are you expecting an inheritance? Do you have long-term care insurance and, if so, what is the daily benefit, among other details of the policy (this helps determine if the coverage is adequate to protect assets from nursing home costs).
The third step is to review the assets, including how they are titled, if any assets are “qualified plans,” such as IRAs and 401(k)’s, who the beneficiaries are, and the value of the assets. If they are IRAs, we tend to look to IRA Trusts to manage the asset. The asset list reveals if there will be a probate proceeding, if estate taxes will be owed and whether the client may need to think about protecting assets from nursing home costs.
The fourth step is to develop the elder law estate plan. You determine who will make medical decisions for you if you are unable to and who you will appoint to handle legal and financial affairs through a power of attorney if you’re incapacitated. The type of trust is selected, unless a will would suffice. The trustees for a trust are chosen and executors for a will. Much care is given to selecting your agents and how assets are distributed so that as smooth a transition as possible is planned upon death or disability.
Once the plan is in place, a review should be held every year to do a review. In our Oakland county elder law and estate planning office we have a system set up called the Family Protection Plan. Having a will tucked away in a drawer for 20 years is not an up-to-date plan that will work when needed. An elder law estate plan is a living plan that requires periodic review.
Thanks to Bonnie Kraham and her article.
Attorney Christopher J. Berry is a Metro Detroit estate planning and elder law lawyer who helps families, seniors, veterans and business owners with their important legal needs. Oakland County estate planning lawyer, Christopher Berry is a partner in the Bloomfield Hills law firm of Witzke Berry PLLC. Mr. Berry practices in the areas of estate planning, business, probate, veterans benefits & Medicaid planning.
What is Michigan Elder Law?
May 26, 2011
Filed under: Elder Law,Estate Planning —
Christopher J. Berry | Estate & Elder Law Attorney @ 11:28 pm
Many people in Michigan ask what what is elder law and how is it different than estate planning? For that reason we created an online resource, Michigan Elder Law Center, that focues entirely on elder law issues.
Elder law is an area of law that focus not so much on what happens after your death, but more on what happens if you do not die, and you continue to age. This is a very different conversation than your generalist attorney or even your estate planning attorney would have with you.
For example, if you continue to age, how are you going to pay for home care, assisted living or a nursing home, if necessary. Those costs can run up to $8,000 per month. Much of what we discuss as Oakland county, Michigan elder law attorneys revolves around being able to age with dignity.
Attorney Christopher J. Berry is a Metro Detroit estate planning and elder law lawyer who helps families, seniors, veterans and business owners with their important legal needs. Oakland County estate planning lawyer, Christopher Berry is a partner in the Bloomfield Hills law firm of Witzke Berry PLLC. Mr. Berry practices in the areas of estate planning, business, probate, veterans benefits & Medicaid planning.
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