Lessons from Britney's Trust

In light of Britney Spears' recent problems, the court has declared she is not capable of handling her own affairs.  As a result, her father was appointed to take care of Britney and some of her assets.

Britney also formed a trust according to this article.  Like most trusts, Britney was named as the sole trustee.  However, because she was judged incompetent to handle her own affairs, she can no longer manager her trust.  Apparently, the trust did not provide for a successor trustee, because her brother and attorney are now acting as trustee.  Or, court action was required to have them appointed.

Now that her brother has been appointed, he is trying to determine what the trust owns.  Britney was not clear on "funding" the trust.  She put some of her assets and companies in the trust but others were left out.  So, he has petitioned the court to make a ruling to try to determine what is in the trust for him to manage.

The lesson is that maintenance of your estate plan and trust is important.  While it is good that Britney formed the trust, it would have been better if she funded the trust.  It would have been best if she kept a list of the assets in the trust for the benefit of the succeeding trustees.

Children From a Previous Marriage

I watch how people find this blog.  It gives me an idea of the topics in which people are interested.  One search was "estate planning in arizona and children from a previous marriage".

As a general rule, in Arizona, children from a previous marriage have a special status under the law.  If you do not have a will or a trust, then the government will give half of your community property and half of your separate property to children of a previous marriage.  The surviving spouse gets the rest.

I have seen this outcome and it is often very tragic.  Once, because of the way a couple had structured their investment properties, the husband owned the rental house in his name.  It was the couple's retirement.  When he died, his wife lost half of the retirement to the children of the husband.

Usually, when there are children of a previous marriage a trust is a good idea.  The trust is structured so that the surviving spouse gets to use the money during his/her life, but then at the surviving spouse's death the money can go to right children.  Otherwise, if a will is used the surviving spouse gets the money and the surviving spouse could give it to anyone, and the children could get nothing.

If you are married and you or your spouse have children from a previous marriage you need to speak with a qualified Arizona estate planning attorney.  This general information is insufficient for any planning.

Family Mission Statements

Having a purpose in life is an important part of making decisions.  Whether we conciously choose a purpose or not, our daily decisions constitute our purpose in life by default.  The default choice often turns out disappointing.

Part of finding our purpose, and then living by it can be assisted by creating a Family Mission Statement.  For the estate planning process, a family mission statement is extremely valuable.  The mission statement will the the guiding principle and purpose for the choices you make.

Here is an interesting article on what estate planners need to know about mission statements.  The author tackles the fear of parents that will leave wealth to their children:

Medieval alchemists failed to turn lead into gold. Wealthy twenty-first century parents fear a reverse alchemy. Will their privileged children transmute inherited gold into leaden lives – hollow, shallow, self-absorbed, addicted, indolent, meaningless, wasted?

He discusses how the extremely rich use mission statements to develop a coherent plan to passing on their wealth and passing on enduring values. 

Whether you are extremely rich or not, you can pass on your wealth and your values.  A caring estate planning attorney will be sure to ask you questions regarding how and why you want to do the certain things that you choose to do.  With a mission statement, you will be prepared to answer those questions because you will have a purpose for the answer.

As part of my planning, I like to help my clients with those questions.  Some are not interested, but many of my clients find the process of considering their purpose and mission very helpful in the planning process.

Sometimes Telling Your Family Is Wrong

I am an advocate of open estate planning, meaning I feel more families should communicate openly about their estate plan.  I believe that explaining your plan can reduce and relieve some of the bickering that occurs in a family after death when the plan is discovered. 

However, there is no right answer for every family.   In this article, Val Farmer discusses open planning and shares how open planning resulted in bickering before the death.  Unfortunately, openness only served to advance the bickering before the death.

I suppose keeping the estate plan secret can be succesful because it will tend to influence potential heirs to keep treating the benefactor civily so they do not get written out of the will.  And, conversely, the potential heirs will not harrass the benefactor because they do not know they have already been written out of the will.

Val Farmer tells of three cases along the preceeding themes.  In one case of hostility,  a daughter married outside of her mother's church and objected to her mother's faith.  Her mother gave 25% to her church in the will and then told her daughter about it.

The daughter constantly harassed her mother about the Will for the last 15 years of her life, even to the point of withholding visits from her only grandchildren.

It would have been better for the daughter to discover, after her mother’s death that her mother continued to support the faith of her fathers. The mother would have had a much more peaceful final 15 years of her life and would have been able to see her grandchildren more.

So, there is no perfect answer.  While I am still an advocate of open planning, I concede that in some situations openness may only serve to increase the strife and bickering.  As with every decision, I discuss the possibility with my clients and leave the decision to them. 

I firmly believe that in almost every case, a well informed client will make the right decision for them.  Consequently, my role is to ensure my clients are well informed when they choose.

Burial, Cremation, Jewelry, or Eco-Friendly

At the end of all estate planning, I provide a form that allows my clients to think about what they want for a funeral, memorial, and disposition of their remains.  They are able to then take that and complete it at their convenienc.

I usually mention burial or cremation because they are the most common.  However, there are two other methods for the disposition of remains that have become available because of technology.

Several years ago, I saw this website that allows you to have your loved ones remains turned into manmade diamonds.

Just recently, I saw this post by the Professor Beyer on his blog.  A new company Promessa uses a process to freeze dry a person's remains and turn it into an eco friendly powder.  Follow the links to see how your loved ones remains can be returned to the cycle of life and serve to nurture the growth of a tree planted in memorial.

Prisoner of the Court Appointed Guardian

Freedom is the great American Dream.  Freedom to succeed and be who we want to be.  We are normally free from direct control of the government, except when we have been convicted of a crime.

However, this story about a court appointed guardian demonstrates that the government can take away almost every significant right from ordinary citizens, including the right to manage and spend your assets and money.  One way to prevent the government from taking such absolute control over our assets is to place them in a properly drafted trust.

Consider Norman Baker's situation:

Until he was placed in a nursing home against his will by the court-appointed attorney he is trying to reject, Norman Baker owned and managed two dozen rental properties, many of which he designed and built himself. He also owned a 33-acre farm, with four horses, an array of tractors and other heavy farm implements, a carefully preserved century-old barn, a restored farmhouse from which he drew steady rental income, and a 3,000-square-foot brick home, which he also designed and built.

All Norman Baker's properties were free of any liens or mortgages. ?Before he was confined against his will to a nursing home, Norman Baker also had some $250,000 in cash and liquid investments above and beyond his real estate holdings. He rented his properties and lived a quiet, private life.

Today, without writing a check or using a credit card or making a single bad investment, Norman Baker has less than $20,000 in cash. Most of his rental properties are vacant. Some have been flooded. In one, a broken pipe has resulted in a water bill in excess of $19,000. Nearly all his properties, which were once entirely rented, are now vacant. Some have been seriously vandalized. A rental property business, which yielded a steady cash flow, is now bleeding cash every month.

Read the whole story.  Unfortunately, Norman Baker had his assets controlled by someone appointed by the court.  Obviously, spending his cash and leaving the property distressed was contrary to what Norman would have done. 

Norman could have protected himself from this situation.  If Norman had put his assets in a trust, the court would not have controlled them.  Instead of the court controlling the assets, the successor trustee would have controlled the assets.

Inheriting Stock

When you inherit stock in a company, you may have no idea what to do with it.  If it is a significant sum you should definitely get help and competent advice.

This article can help get you started with the process.  However, you should always consider getting the help of a professional financial advisor, broker or other experienced individual.

Stimulus Tax Rebate Check

Here is a link discussing how all seniors can file a tax return to get the stimulus check from the IRS.  Hurry before it is too late.

Examples from Heath Ledger

After the death of actor Heath Ledger, there was a lesson to be learned because he did not change his estate plan to provide for his daughter and her mother.

Now, there is another lesson.  Heath's father was executor of his grandmother's estate many years ago.  Apparently, as a result of that Heath's father alienated and estranged some family members.  As a result, the family members are now challenging Heath's father's management of the estate.

It goes without saying that this will undoubtedly cost Heath's estate both time and money.  In addition to the strife. 

Some may think that this happens only to the rich.  However, these same situations are played out in the lives of ordinary families.  These families sometimes have only tens of thousands of dollars at stake so it shouldn't happen to them, like it does when millions are at stake.

Ultimately, the amount of money is only one dynamic.  As seen in Heath's case, the uncles who have no interest in the money for themselves are challenging the process because of something that happened 15 years ago.  Strife can happen in any situation.

Spending Money Makes You Happy!!

I couldn't help posting on this article.  Apparently, spending money makes you happy when you spend it on someone else.

Regardless of how much income each person made, those who spent money on others reported greater happiness, while those who spent more on themselves did not.

I think that is one reason that some people get joy from planning.   They get the sensation of giving to their children and grandchildren.  That is why I believe it is a great opportunity to share a written letter of your feelings with the ones you love as part of your estate plan.  Writing it now helps you experience the joy and reading it later helps your family experience more joy in receiving.

Sun Lakes Seminar

The seminar "19 Smart Ways to Plan Your Estate" that I presented this last week at Northern Trust Bank in Sun Lakes was a great success.  Thanks to those that participated.

I was pleased with the participation and the feedback.  The group asked great questions.  We were there talking afterwards for another 30 minutes or so.  Given the evaluation forms, it looks like everyone was glad they came and would refer a friend. 

I designed the seminar to explain how the probate processes work and what estate planning tools are necessary and what tools are optional.  I was told that it was a very clear explanation, which made it simple for people to evaluate what they needed and wanted.  

I did that on purpose to dispell all the myths that surround estate planning.  Especially the mystical and mighty "living trust."  It is a great tool, but so many times people are sold a trust that only benefits the person selling the trust.

I am willing to give the seminar to community groups, churchs civic groups, etc. so that people can get straight answers to their questions about estate planning without all the hype.

I especially want to thank Mark Zener and Sandy Hudson of Northern Trust for working with me.

Strategic IRA Planning, Consider A Trust

IRAs and other retirement investments are subject to special rules because of their preferred status in the IRS's rules on qualified investments.  Estate planning with IRAs requires specialized knowledge to be able to leverage the IRS's rules for maximum benefit for your family.

Here is an excellent article with illustrations for how to create more wealth for your family by strategic IRA planning with IRA inheritance trusts.  His article starts with the following:

[I]f a child or grandchild inherits an IRA, they will be tempted to close it out and withdraw all the money. In addition to having to pay income tax on all the withdrawal, there will be no continued opportunity for further tax deferred growth. If, on the other hand, a 25-year-old child inherits a modest, say $100,000 IRA, and if the IRA is left in place to pay only the required minimum distributions over the child's lifetime, it will pay the child far in excess of $1 million.

Consequently, the benefits of planning ahead with your IRA assets are plentiful.  Appropriate planning can protect the benefits of the IRA and protect the assets of the IRA for your heirs.  Read the article above and you will see illustrations of the power of an IRA inheritance trust.

Unfortunately, I have had occasion where IRAs were just left to children and grandchildren without consideration for the tax consequences of the planning.  This most often happens when estate plans are created by do-it-yourselfers, document preparers, and attorneys that do not focus on estate planning.

Trusts Ensure Equalization Between Benefiaries

When creating an estate plan that includes a living revocable trust, many consider allowing the trust to own life insurance and annuities.  This article discusses whether the trust should own the policies or whether the trust should be the beneficiary. 

As the author states, reasonable people will differ.  Consideration of ownership and beneficiary designations is part of the estate plan design.  Failure to consider the effect may lead to results that were not intended.  One consideration is who will ultimately bear the burden of estate taxes and expenses.  The author points out:

If the trust provides that it will pay all of the expenses and taxes and then split into three or four shares, leaving an asset outside of the trust will result in the trust's beneficiaries paying all of the taxes, even on the asset transferred outside of the trust.

Additionally, if you equalize everything today, then in three years your assets may change and your estate is no longer equalized.  Children could get unequal shares, so you would constantly have to monitor your estate plan. 

However, if everything is paid to the trust, then the job of equalizing your estate is simple.  If you control distribution through your trust and ensure your trust owns or is the beneficiary of all your assets, then the job of equalization is done for you.

Other reasons for using the trust as beneficiary rather than outright distribution include:

  • holding proceeds for minor children;
  • protecting proceeds from creditors, ex-spouses, etc.;
  • equalizing estate taxes and expenses;
  • protecting family members receiving government benefits;
  • putting assets in a spendthrift trust for poor money managers; and
  • leaving your retirement as your children's retirement.

The Business Side of Probate

I came across this entry in a real estate investing website discussing probate investing.  His article suggests the benefits of investing in real estate that is in probate.  He states that probate investing is lucrative because people who inherit property are motivated to sell at a reduced price.  He states they are motivated because:

In many cases, when an heir inherits property, they inherit a burden. There are estate taxes to be paid, repairs that must be made, in some cases, a mortgage or second mortgage must be kept up to date. Add in the fact that there are often multiple ‘owners’, and many of them may live far away, and you have a situation where selling the house is the best, sometimes only option to make sure that everyone gets their fair share of the estate. Ready cash may be more important to them than any other factor. Generally people who inherit the estate want the money and not the house, they will often take a quick sale at a discounted price.

 

While some of the reasons may be unavoidable, others are perfectly avoidable, like estate taxes.  Additionally, by creating a trust that holds the property the trustee can manage and sell the home for an appropriate price rather than leaving multiple owners to try to sell it together.

 

 

You "Can" Do A Simple Arizona Probate Yourself

Someone found my website with the following Google search:

"how to probate an estate in arizona, can I do it myself"

So searcher, if you try searching again, I hope you find this post.  The short answer, to the chagrin of many other attorneys is YES.  In Arizona, the laws are structured so that it is not impossible to do a probate by yourself, "pro per" as we attorneys say.  The Arizona legislature is not "friendly" to attorneys like other states.

I do not recommend a "do it to yourself" probate because I have seen some non-attorneys go wrong.  But, if you intend to probate your estate by yourself to save yourself the attorney fees, then I would like to help you get started.  I gain nothing by hiding the legal process from people who want to educate themselves.  In my opinion, once people see how complicated a "simple probate" is they still may hire me. 

However, I would not recommend trying your hand at anything but a simple probate.  My definition of a simple probate is where there is little debt, just one or a few assets, and one heir (or all the heirs get along extremely well and already agree).  If you meet those first requirement, then you should also be willing to invest a significant amount of time learning what you need to do, going to court, and in administration. 

Probating the estate of a spouse may not be that difficult, unless there are children of a previous marriage.  If there is no will, you will need to ensure that you have found all the right heirs.  Most people do not know that children of a previous marriage get half of the community property and half of the separate property too.  (A great reason to create an estate plan.)

That absence of a will brings up another point.  You need to know whether you are "probating" a will or "probating" an intestate estate (no will).  Each requires its own specific forms, but the forms available in Maricopa County themselves maybe of some guidance.

As you can tell, there are many little tricks and traps that you need to know.  But, for those that are adventurous enough to try, and willing to spend the time learning here is the information and forms to do it in Maricopa County.  The forms would be similar for other Arizona Counties, but you can check with them. 

If the estate is small, then there may be the possibility of avoiding "probate" altogether and collecting everything by affidavits.  Look at the self help forms for that.  If there is less than $50,000 in assets not real property (houses, real estate, land, etc.) and less than $75,000 in real property you can avoid probate.

Additionally, here is a link to the Arizona statutes governing probate and estates. 

Good luck with it if you give it a try.  This information is not enough for you to make every decision and is certainly not enough for guidance on everything you need to know.  It is only enough to get you started.  This should not be relied upon as legal advice because there is just too much to consider to fit into one post.  My legal recommendation, for my malpractice coverage, is to hire an attorney.  There may just be too much to risk.

After all, if it is a simple estate, then it will not be an expensive probate.  Additionally, it may be helpful to see an attorney who could analyze the case and even prepare the affidavits for a minimal amount.

Administration of a trust is not the same as probate, and it requires legal guidance in my opinion.

Tags:

Wall Street Journal on Business Succession Planning

The Wall Street Journal has an online article about business succession planning for parents that own businesses.  The article is behind a firewall so you cannot read it without a subscription.  But the article starts with this probing question and answer.

It is one of the toughest questions that parents who own businesses confront -- how can they be equitable in their estate planning when one child works for the company but others don't?

The answer: It isn't easy. But the best way to preserve harmony and, possibly, the business is to communicate with family members and forge an ownership-transfer plan as far ahead as possible.

Because family businesses are so often integral to the family, they are harder to pass on successfully to the subsequent generation.  Small businesses are always more difficult to deal with because they are hard to operate.  They can also introduce tax liabilities that force the sale of the business.  Often, it is very difficult to divide the business between heirs so much of the value is lost due to the sale.

While the solution may be simple and elegant, getting there is the hard part.  There are many personal and family issues tied up in the business, in addition to the many legal and tax consequences.

Famous Wills

Attorney Tracy Ellis posted a comment to my blog and I was introduced to her blog.  I read through it and found this interesting post.  A link in that post leads to estate plans of famous people for you to review.

Her observation was acurate, that you need a good estate plan even if you are not rich or famous.  Irrespective of wealth or fame, no one wants their family to endure unnecessary pain and burden on our passing.

Now more than ever, our lives are so complex that we need a good estate plan just so our families can make sense of our lives.  Goodness, some days I can't stay on top of my own life.

 

Funeral Planning, The New Way

It is customary to give some instruction about your wishes for your own funeral.  Apparently there is now a trend for elaborate planning of one's own funeral.  Here is a post by Neil Hendershot on his blog.

This is the one quote that sums it up:

With wedding planners already big across the United States, the latest trend in the mighty burial business is funeral pre-planning -- helping the living organize their final event on earth.

I can easily picture outrageous funeral planning when compared to wedding planning.  Go to Neil's post and read the rest.  There is some outrageous planning that you will have to read about yourself.

 

Regular Estate Planning Reviews

The death of famous actor Heath Ledger was unfortunate and unforseen.  News regarding the aftermath shows how important it is to review and update your estate plan.  Professor/Blogger Gerry Beyer posts about it here.

Apparently, Heath prepared a will in Australia before he became successful that left everything to his parents and siblings. However, since then he had a child who may face a possibility of being left out of his estate. 

There is a possibility that New York or Australian law may provide for children that were born after the will was created.  Such a provision is for "pretermitted children" and was created because it regularly occurs that parents do not update their wills after having children.

IRS Refund Scam

Here is an alert from the IRS on tax scams. 

Apparently there is a new one.  Rotten criminals are calling the elderly and posing as IRS agents.  They get personal information acting as though they are helping them get the tax refund.  Then they steal their identity or empty their bank accounts.

Business Succession Planning Is Like Nominating Guardians For Minor Children

I often ask clients what would happen to their children if they did not return from their appointment.  Then we talk about making sure that there is an emergency response plan in place to assure their children are taken care of in the event they do not return home because minor children are unable to care for themselves.  They need a legal guardian.

Small businesses are often like minor children.  They need constant care and attention from their owners.  They need a legal guardian--the boss.

If you are a small business owner, consider that question?  What would happen to my small business if I didn't return to the office today?  What would happen to the value of the small business?

If you cannot answer that question, then you need business succession planning as part of your estate plan.  Here is an article that talks a little bit about succession planning.  It can prompt some questions.  If passing your business and/or its value to the next generation is important, then talk with a qualified estate planning attorney.  Statistically, you only have a three in ten shot at getting the business to the next generation.

Sun Lakes Estate Planning Seminar

I got a call the other day from someone who received a copy of the flyer for one of my seminars in Sun Lakes.  She wanted to learn more, but she couldn't attend the seminar.  So, we set up a consultation in my office.

I perform the seminars as a public service and to introduce myself to the community.  I also realize that sometimes it is more comfortable to learn something in a group workshop or seminar.  However, if you cannot attend a seminar, you can learn what applies to your specific situation in a customized complimentary consultation with me.

I offer complimentary consultations because I believe the most important step in estate planning is choosing an estate planning attorney that you are comfortable with.  You will need to discuss some of your closest guarded financial and personal information to properly plan.  It shouldn't cost you money to meet with an attorney to see if there is a fit. 

Arizona Pet Trusts

Are you worried about a pet outliving you?  In Arizona, you cannot will or leave property to your pet any more than you could will or leave the money to your car.  Under the law, a pet is seen as personal property.

However, you can leave money to a trustee with the instruction to care for the pet.  Leona Helmsley left millions to her dog Trouble.  You may not have millions to leave your pet, but you can still create a valid Arizona Pet Trust.  This is an opportunity to take the burden off a family member to financially care for a pet.

Here is a link to the Arizona law with some explanation from www.animallaw.info.  There are some limitations to an Arizona Pet Trust.  Here are a few:

  • It is for a "designated domestic or pet animal".
  • The trust must end in 21 years or on the death of the pet(s).
  • You can only leave enough to reasonably care for the pet(s).
  • The trustee cannot convert any of the trust property to her use.

This article by an Arizona attorney prompted this post.

How To Use Your Tax Rebate

I read an interesting article here, written by Sheryl Garrett, CFP®, author of Personal Finance Workbook For Dummies that discussed what to do with "found money" that you were not expecting like the tax rebate.

The list has several great ideas to use the money wisely.  Her list includes investing it, using it for a dentist checkup, paying a health membership, etc.  She does not recommend just frittering it away on stuff.

One of her recomendations is to:

Use the rebate money to engage the services of an estate planning attorney. If you don't have a will then have one drawn up. Without a will issues such as child guardianship and disbursements of assets will not be decided by you, but rather the laws of your state. For many families, additional estate planning documents are also needed.

This could be the excuse you need to invest in an estate plan.

Excuses For Failing To Plan

I love analogies because it helps me get to those "AHA" moments when I am learning something new.  I really love sports analogies because sports were a big part of my youth.  The sports analogy he used made me stop and think about some of the things I have been procrastinating.

I read an article this morning and I realized that I only have the excuses that I make.  Rarely are my excuses true rational reasons for failing to do what I should.  My decision is to stop making excuses for the important things.

The article compares the excuses athletes make to the excuses made by people failing to plan their estate.  The best quote is:

Here are some of the excuses I've heard [for not planning]: I'm too old. I'm not old enough. I have too much land. I don't have enough land. My kids won't fight. My kids will fight anyhow. We'll do it after harvest. We will do it after taxes. We will do it after vacation. We will do it after the election. We need to talk with our kids first. I already did my planning with my attorney. I just bought some insurance. I just went to some workshops. I am not going to do anything. I'll let my spouse figure it out after I'm gone. We will decide after land prices stop going up.

Translation is "I am making excuses because I do not what to deal with it."

The author helps families create farm continuation plans.  Given the many variables in our economy and the estate tax structure, this is a highly important process for farm owners.  The same reasoning applies to business owners too.

Ultimately, this applies to everyone with even simple estate plans.  Just a simple will and other planning documents can make all the difference for your family.  Estate planning isn't just about money.  Estate planning is about the end of life transitions that reaches each of us.

Accordingly, a good estate plan has a will, financial durable power of attorney, healthcare power of attorney (health care proxy), living will (medical directive), and instructions and information for others to take over your affairs or conclude them.  Please do not make excuses for failing to plan.

Seven Elements of an Estate Plan

Yuma, Arizona attorney Larry Deason identifies seven important elements of an Estate Plan in this article.   The article is brief and easily understandable.

The seven points he makes are:

  1. Health care power of attorney with a living will so your appointed agents can care for you to avoid costly guardianship.
  2. HIPPA authority so that your loved ones can have access to your confidential medical information.
  3. Durable financial power of attorney so your appointed agents can care for your money and assets to avoid costly conservatorship.
  4. Revocable living trust to avoid costly living probate (conservatorship) and death probate.
  5. Pour over will so anything not in the living trust is added upon death.
  6. Funeral trust to protect money from creditors and Medicaid to ensure your family does not bear the burden of your funeral.
  7. Completed legacy estate plan distributing the personal items (like grandmother's ring or grandfather's watch) that most frequently cause family fights.

I agree with each of these points.  However, a revocable living trust is not necessary for many situations.  In a modest estate, a will and proper advance planning is sufficient.

IRS Scrutiny of Gift and Estate Tax Returns

The IRS will scrutinize gift tax returns and estate tax returns because there is much more "wiggle" room than income returns.  The process also invites more creativity by taxpayers and their attorneys.  Here is the IRS manual on gift and estate tax returns.

Preparing such returns should be done with the assistance of professionals.  This is especially true for exectutors, trustees, and personal representatives of an estate, who could be personally responsible.

Two Lessons To Learn About Keeping Your Plan Current

I read this about Anna Nicole Smith's Will on the Wachbrit Blog last year.  Now that I have my own blog I will share it again.

If you saw in the news, Anna Nicole Smith had a daughter.  A short time later her grown son died.  Adding tragedy to the situation, Anna Nicole died months later.   After these three events, the status of her estate was in question.  Her will left everything to her deceased son and seemed to exclude her new surviving daughter.

Did she really want to disinherit her newborn daughter?

At the time her will was drafted, I am confident that the will accurately reflected her wishes--at the time.  Anna would likely not approve of the outcome as a result of the series of events that tragically unfolded.  However, her will, as written, could control the outcome and leave her daughter with nothing.

The two lessons to take away are:

  1. Consider and plan contingencies for what you would believe to be highly unlikely events.
  2. Review your estate plan regularly, and especially in expectation of major life events.

3 Easy Step To Choosing A Guardian

Look here for a simple article on choosing a guardian for your minor children.  The three simple steps it lists are:

  1. Make a list of possible guardians.
  2. Decide what matters most.
  3. Match people with priorities.

Perhaps the most important thing to remember is that you do not have to consider your possible guardian's ability to manage finances.  You can appoint a conservator/trustee to manage the money. 

Accordingly, in conjunction with your decision for guardian, you can choose a conservator or trustee to hold the money and spend it for your children--according to the instructions you leave them.  The three simple steps for choosing a conservator/trustee would be the same except you would subtitute your financial principles and priorities with those of raising your child.

 

Delaware's Terry Shaivo

In Delaware, a young pregnant woman overdosed on Heroin and suffered severe brain damage.  She was kept alive to bring the baby to term.  The baby was safely delivered in 2007. 

Since then, she has continued to live off a feeding tube.  Like Terry Shaivo, her doctors say that she is in a permanent vegetative state, and that her brain is permanently damaged.  She will never recover conciousness.

Her mother sought permission from the court to remove the feeding tube.  She and an uncle testified that the young woman told them, during the Terry Shiavo episode, that she would never want be kept alive.  The court granted permission.

However, her father (her parents divorced when they were young) believes that she should be kept alive.  He appealled the courts decision even though the court found the evidence was clear and convincing that the young woman would want to die.

I have my personal beliefs, but would never want to impose them on another.  Similarly, I would never want anyone to impose their beliefs on me.  The only way to ensure that neither happens is for everyone to express their wishes in a living will.