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Law School Sets Up Estate Planning Clinic to Help Veterans

Law students at The University of Nebraska's College of Law are helping military veterans with estate planning in a special clinic that gives the veterans help with wills and other documents while giving law students practical experience. More than fourteen veterans have received free counseling, and it is hoped that the Veterans Advanced Directive Clinic will grow.

Ryan Sullivan, a professor at the University of Nebraska’s College of Law who is involved with its clinics, was quoted in a Lincoln Journal Star article about a heart-warming legal clinic at the law school. In “University of Nebraska law students help veterans with estate planning, wills and more,”  he describes the Advanced Directive Clinic, where law students help veterans with estate planning and end of life documents.  Students are eager to put their skills to work, and veterans appreciate having these necessary documents properly prepared.

These newly-created documents are immediately scanned into the Veterans Affairs' database, so that they can be accessed by doctors across the United States.

Sullivan remarked that the vets have done so much for the country through their service.  He thought this was a good way to teach law students about the sacrifices the veterans have made and to give them help that they need.

One of the law students in the Advanced Directive Clinic said that the veterans who were helped expressed relief to have this settled. They don’t have to worry about what might happen in the future if they didn't have a will or other necessary documents.

The College of Law's professor of clinical practice Kevin Ruser said the success of the first law clinic for veterans could mean more clinics in partnership with the VA. With ten veterans on a waiting list, the initial group of three students who worked at the clinic this summer could easily grow to five students later this year. Each law student would handle three clients.

These law students have been a great help to these veterans with the basics, but more complex issues need the expertise of practicing attorneys who specialize in estate planning. Contact an estate planning attorney to discuss your circumstances.

Reference: Associated Press (Lincoln Journal Star) (August 1, 2015) “University of Nebraska law students help veterans with estate planning, wills and more”

If you are interested in establishing a living trust, please visit our website.

Estate Planning Keeps Your Life Private by Steering Clear of Probate

Among the many benefits of having a well-designed estate plan is making the process of administering your estate much less of a burden on your heirs and maximizing assets that can be passed to subsequent generations.  Another benefit to be valued – privacy. Estate planning can help your estate avoid probate, the legal process of distributing your estate after you die that goes through the court system.  This is a lengthy and expensive process, which becomes a matter of public record.  Estate planning is by far a better way to go.

When estates are subject to probate, the process of administering the estate and distributing assets takes place through the court system – when it becomes public record. In “Unpacking the Perils of Probate,” The Des Moines Register explains how to avoid probate by planning in advance to protect the privacy of your estate and your heirs.

With headlines of celebrity estates and the errors of the rich and famous, some people maintain that a will is all they need for their assets to be administered outside of probate. This is not true. A will “tells” a probate judge how you want your assets distributed through probate. To prevent your assets from going through the probate process, there are several steps you can take. Talk to a qualified estate planning attorney about them.

Set up a Trust: A trust can allow for more control when your assets are distributed after you pass. This is a very good benefit for those with minor children, if you don’t want them to receive their inheritance in one lump sum. Trusts are more expensive to set up than just a will, so talk with an estate planning attorney to see if one makes sense for you.

Designate Beneficiaries: Remember that life insurance policies and retirement accounts have beneficiary designations that direct who receives these benefits when you die. The will can’t touch them. The article explains that assets covered by a beneficiary designation don’t pass through probate. The designated beneficiary typically trumps what’s in your will. You should make sure you review these designations regularly. If there’s no beneficiary designated, that account may be subject to probate.

No one wants to burden loved ones after we die. One way to be sure that your estate plan will save your heirs from delays, fees and migraines, is by working with an estate planning attorney to avoid probate.

Reference: The Des Moines Register (August 3, 2015) “Unpacking the Perils of Probate”

Please visit our website for more information on estate planning.

Will Your Money Work Hard Enough When You Retire?

You are working hard in your pre-retirement years to max out your retirement funds. And while your money should always work, when you do retire your money is going to need to work even harder. It’s time for you to demand more from your money!

If you think of your money as a partner in your retirement plan, the idea that it should work hard for you makes a lot of sense. Consider these “demands” on money that appeared in “Seven demands retirees should place on their money,”from MoneyWatch:

• Growth: Make      sure you still have a growth component in your portfolio so that you aren’t      faced with attempting to live with an income that no longer covers your      costs.
• Safety: Keep      your money in a safe place and in the care of a reputable custodian who is      not part of the investment company. Two words of warning: Bernie      Madoff.
• Tax      Efficiency: Remember what Mom used to always say,      “It's not about how much money you make, but how much money you keep.”      After tax cash flow is a must.
• A      Healthy Long-Lasting Income: Ask your financial planner      to conduct a cash-flow analysis to see how your money shakes out in five,      ten, twenty and thirty years. Get help creating a plan that takes taxes      and inflation into consideration and one that increases the probability      that you’ll receive an income for the rest of your life.
• Control: Have      some control over the access to your investments. What if there's an emergency?
• Access: Set      some money aside for an emergency fund or rainy day fund, in case you have      an unforeseen expense.
• Effective      Estate Planning: Make sure that your estate plan lets      your loved ones inherit your estate in the least-taxed, most      cost-efficient wa y.

Make your money work hard! Speak with a qualified estate planning attorney.

Reference: MoneyWatch (August 3, 2015) “Seven demands retirees should place on their money”

For more information on how to protect your money, please visit our website.

Tragic Death of Bobbi Kristina Brown Holds Grim Lessons for Parents

The tragic and untimely death of Whitney Houston’s daughter Bobbi Kristina Brown holds a number of lessons in estate planning that are applicable for parents and young adults. Because of laws that control information and decisions with regard to medical treatment, it is imperative that anyone over 18 have written advance medical directives in place. Necessary documents include the designation of a healthcare proxy, a living will and a “HIPAA Release,” so that a healthcare surrogate may communicate with providers about the care of a patient who is in a coma or otherwise incapacitated. These documents and planning are no longer the exclusive purview of seniors. This is unpleasant business, but young adults who are unable to communicate their end-of-life wishes need to be as prepared as the elderly.

Parents of college-bound freshman age 18 and older need to have several documents prepared, according to a NewsMaxarticle, “End-of-Life Lessons of Bobbi Kristina's Tragic Death.” A healthcare designation, a living will, HIPPA release, and durable power of attorney should be standard documents prepared for the ‘new’ adult so that parents can act on behalf of their kids if the unforeseen occurs.

Bobbi Kristina was only 22 and the only child of the late Whitney Houston and Bobby Brown. She passed away after a very public six-month family fight over how to treat the comatose Brown, after she was found face-down in a bathtub in the Atlanta townhome she shared with her boyfriend Nick Gordon.

This story illustrates the difficulties families deal with when confronted with complex healthcare decisions. The article emphasizes the need to create advance medical directives to help family members of patients. These end-of-life instructions should be in a legal document, prepared by an estate planning attorney so that it satisfies the requirements of state law. The directives should include:

• A      Healthcare Designation. This is a very critical part of an      advance directive, as a “healthcare designation” or “healthcare proxy”      names an individual you authorized to make medical decisions for you, if      you are unable to do so on your own. This friend or relative is given what      is also called “durable healthcare power of attorney (POA).” This allows      them to speak on your behalf.
• A HIPPA      Release. This allows your proxy to communicate      with your healthcare providers about your care.
• A      Living Will. This formal statement communicates your      wishes for medical care should you end up in a “persistent vegetative      state” with little or no chance of recovery, and you can’t communicate      your wishes. Talk to an estate planning attorney as every state has its      own regulations for living wills.

It’s no shock that end-of-life planning is a difficult topic to discuss. Just 26.3% of Americans have completed advance directives, according to a 2013 study. But as the Bobbi Kristina Brown case shows, it’s important and never too early to discuss this topic with spouses, family members, partners, adult children, and parents.

Reference: NewsMax (July 31, 2015)“End-of-Life Lessons of Bobbi Kristina's Tragic Death”

Please visit our website for more information on health care documents.

Baseball Legend’s Contentious Divorce Becomes a Contentious Estate Battle

Ernie Banks, known as “Mr. Cub” had been diagnosed with dementia just days before he signed a will leaving his small estate to a caregiver, charges his estranged wife. Seems like she isn’t done with him yet.

In a case for resolving marital disputes sooner rather than later, the battle between Ernie Banks and his fourth wife, Elizabeth Banks, has now extended into an estate battle. The couple’s long and contentious divorce was still on-going when he passed away at age 83 this past January. Elizabeth Banks is disputing a March court ruling that validated Banks’ will, which left all of his estate to a caregiver, Regina Rice.

The Chicago Tribune reported that Elizabeth Banks argued in the filing that Ernie’s health was in a rapid state of decline since the preceding October when he was injured in a fall. Rice, a longtime friend to Ernie Banks, took him in to live with her at her home in Plainfield, Illinois while he was recovering.

Elizabeth Banks alleged in those March proceedings that Regina Rice coerced the ailing baseball legend and “Mr. Cub” into making changes to his will to give Regina all of the assets. However, two paralegals testified in the case that Ernie had the capacity and was of sound mind during the notarization of the will changes. The witnesses also said Ernie also said to them that he didn’t plan to leave money to his family.

Regina Rice has told the media that Ernie’s estate was worth a little more than $16,000 when he passed away.

For more on this story see a recent Sporting News article titled “Estranged wife claims Ernie Banks had dementia when he signed will.”

Make sure that your estate plan is legal and solid, so that there are no conflicts over your assets. Contact a qualified estate planning attorney to discuss your situation.

Reference: Sporting News (July 27, 2015) “Estranged wife claims Ernie Banks had dementia when he signed will”

Please visit our website for more information on estate planning.

Arbitration in Nursing Home Contracts are Enforceable Nationwide

In 2012, a U.S. Supreme Court ruling made it legal for nursing homes in New York State to use and enforce arbitration agreements in admission contracts. Until that decision, patients and nursing homes with disputes had no option but to litigate – expensive and time consuming for all parties. Buffalo attorney Julie Bargnesi brings a unique perspective to this issue; currently an attorney who represents health care providers, she was formerly a nurse in a hospital where she advocated for patients.

In most states, arbitration agreements are standard in nursing home admission contracts, except for New York State. Patients and providers did not enjoy the benefits of arbitration, having to instead go through the expensive and lengthy litigation route, as detailed in a recent Buffalo Law Journal article, “Nursing home arbitration enforceable in NYS.”

In New York, as well as several other states, the law did not allow for arbitration agreements to settle incidents that happened in nursing homes. These states refused to enforce arbitration clauses in nursing home admission contracts. Disputes went to court.

However, in 2012, the issue reached the U.S. Supreme Court in Marmet Health Care Center v. Brown. That decision struck down any state law that didn’t permit an arbitration provision in the nursing home matter. The ruling held that the Federal Arbitration Act (FAA) overrules any state law that says arbitration clauses in nursing home contracts aren’t enforceable for lawsuits stemming from injury or death.

Despite the Supreme Court’s decision in 2012, the topic still isn’t well-known, the article explained. But nursing homes have started adding the clause into patient contracts, and the majority of families and residents are signing them. With the rise in litigation, the article says that it’s at least a tool that nursing home owners can use to give them some protection from costly verdicts.

Patients will still have protection, as cases can still be challenged in courts, and arbitration agreements can be struck if they aren’t properly constructed.

The arbitrator is like a judge who sees both sides and may say, “He’s kinda right and she’s kinda right, so I’m going to make everyone happy and split the baby.” Arbitration tends to be fairer.

Just like any contract, the article says that a court can review the arbitration agreement to make sure it is legal. A contract can’t take advantage of the resident or his or her family, and a nursing home can’t deny admission based on whether the arbitration agreement in the contract is signed.

The article urges patients and family members to be aware of this arbitration agreement, which will arbitrate all potential claims and waive litigation.

An Elder Law attorney can give you more information about these arbitration clauses and how they are handled in your state.

Reference: Buffalo Law Journal (July 27, 2015) “Nursing home arbitration enforceable in NYS”

For more information on estate planning, please visit our website.

Guidelines for the First-Time Executor

Being an executor of an estate is not an easy task, especially when it is for the first time. When you are named as an executor and the person has died, knowing what to do and how to prioritize the tasks can be challenging. In the best case scenario, the person has had a chance to speak with you at length about their wishes and shared information with you. That does not always happen. Even if you have had that conversation, you may still be a little anxious about taking on the role of executor.

When you have been named an executor and the person passes away, the task may seem overwhelming. But there are certain things that need to be done first. In “Five Things an Executor Should Do Right Away,”the first and most time sensitive tasks are outlined.

Where do you begin?

Every situation is different, but these five suggestions will help the executor get going in his or her new role.

1 - Locate the Will and read it as soon as you can. See if it includes any funeral wishes, such as whether the person wants to be cremated, where they wish to be buried or interred, and if he or she would prefer donations to be made to a specific charity instead of flowers. These items may all be in the will. Since you will need to act quickly and make decisions about the remains after death, you will want to know exactly what the will says about these arrangements.

2 - See if they have any Funeral or Burial Plans. Funeral homes will typically plan a funeral with someone and keep those wishes until the person dies, even if he or she didn’t prepay. The executor needs to ensure that those wishes are followed. When a funeral was paid for in advance, the article advises to make sure estate money isn’t used to pay for it again. If the will doesn’t speak to this issue, see if the family knows about any pre-arrangements. Also, talk to the deceased’s estate attorney to see if he or she is aware of any plans or wishes.

3 - Secure the Deceased’s Home and Property. It’s very important to arrange for someone to stay at the home during this time and/or install a security system. Unfortunately, when someone passes away, the funeral arrangements are typically accessible to all. People will know that the deceased’s home will be empty during visitation and funeral hours, if not at other times, especially if the person lived alone. Also, you need to be aware of any home maintenance issues and have them repaired.

4 - Talk to the Beneficiaries and the Deceased’s Family. The article suggests that as you manage and close an estate, you may be in close contact with the family and beneficiaries. It helps to map out a basic plan of action with them. This will give an idea about expectations on both sides and if they’ll be helpful in the process. It’s a way to connect with them and show that are going to be honest and transparent in your actions.

5 - Spend Some Time Grieving. Finally, it’s important to prioritize and remember to take time to grieve. Remember to have patience, too.

As a new executor, the article says you might be stressed out and overwhelmed about how to proceed. There’s a ton of stuff to do — it is not an easy job.

You may wish to consider calling on the counsel of an experienced estate planning attorney to guide you through the process.

Reference: Philly.com (July 24, 2015) “Five Things an Executor Should Do Right Away”

The attorneys at Vacek, Freed & Thain, PLLC are here to help during this overwhelming process.  Please visit our website for information.

Protect Your Estate, Protect Your Estate Planning Documents

Congratulations – you have an estate plan! Now it’s time to turn your attention to ensuring that these important documents are safe and that they can be located when they are needed. Here are some tips on how to accomplish both of these important tasks.

If you have become incapacitated or pass away and no one knows where your estate planning documents are, all of your efforts in planning will be rendered useless. Unnecessary confusion and expenses will be sure to result if your documents can’t be found. For your heirs to know how to follow your wishes, they have to first be able to find those directives.

All too often, important estate planning documents are lost or accidentally destroyed.

Recently, LifeHealth Pro offered some suggestions regarding how to make sure your estate plan documents are safe in an article titled "5 Tips for keeping original paperwork of key estate planning documents."

The LifeHealth Pro tips include:

• Make sure the original documents are easy to find. This means that, at a minimum, someone else knows where you have them stored.
• Make copies. If for some reason the originals cannot be found, the copies will alert people that the originals exist so they can look for them. However, be sure to destroy the copies if you change your estate plan. Otherwise, this can lead to needless confusion.
• Use a safety deposit box to store the originals and make sure that the box can be easily accessed after you pass away. If you have a trusted executor, you might want to consider putting the executor's name on the safety deposit box.

These tips are just the starting point. Your estate planning attorney will have other recommendations for your unique circumstances.

Reference: LifeHealthPro (July 14, 2015) "5 Tips for keeping original paperwork of key estate planning documents."

Vacek, Freed & Thain, PLLC have a very unique and creative way to ensure against lost or unknown documents.  Please visit our website for more information on this topic.

Long Lost Sibling Sends Brothers on a Million Dollar Scavenger Hunt

For most families, the idea of being out of touch with a sibling for decades is unusual. Even more unusual would be learning that an estranged sibling had passed away six years ago and no one in the family knew. Stranger still – learning that your brother had left you two bank accounts worth $81,000. One family’s experience holds a lesson for all:  if they are not included in a will or discussed with family members, many accounts go unclaimed. For this family, a scavenger hunt proved worth the effort.

When an 84 year old resident of a New York boarding home passed away in 1994, no one in the family was notified. It had been 27 years since any family members had heard from Louis Passerini, an eccentric who had deliberately isolated himself from his family.

Passerini left behind no contact information for anyone to get in touch with his family to even let them know that he had passed away.

Six years later a search firm contacted Passerini's two brothers.

The firm had been hired to find his heirs.

Why?

Passerini had two bank accounts in New York that needed to be distributed.

All his brothers knew was that Passerini was a career military man and a miser. As a result, the brothers thought there might be more bank accounts out there.

Indeed, after a long scavenger hunt, they discovered that their hunch was right on the money.

In fact, there were many bank accounts totaling nearly $1 million.

DNAinfo reported this story in an article titled "Long-Lost Brother's Death Leads Man on $1M Scavenger Hunt."

Not everyone has a long lost sibling with bank accounts all over the country that need to be tracked down.

On the other hand, even the family members with whom we do remain in contact might have accounts they have forgotten or they neglect to mention in an estate plan.

Consequently, when someone passes away it is important that the executor perform due diligence in tracking down any accounts that might have been forgotten.

Reference: DNAinfo (July 20, 2015) "Long-Lost Brother's Death Leads Man on $1M Scavenger Hunt."

Please visit our website for more information on planning your estate.

Anna Nicole Smith’s Legal Saga Winds Down - Maybe

For nearly two decades, celebrity tabloids and the estate planning bar have had a shared interest in the long-running litigation between Anna Nicole Smith's estate and the estate of J. Howard Marshall II. A recent decision may bring the battle to a close – or it may simply be on pause.

It is sad that the many accomplishments of J. Howard Marshall II, an extraordinarily successful business tycoon, attorney and university professor, have been overshadowed by his marriage to Anna Nicole Smith and the nearly twenty years of litigation between their respective estates. But the contrast between the two and the complexity of the legal issues makes for compelling reading.

Smith was a young woman and a former Playboy model. Her husband was far older, and a wealthy investor in Koch Industries in addition to his other business ventures.

Marshall passed away approximately a year before Smith, and the tabloids could not get enough of the story.

When Smith passed away, her estate began seeking to get a larger share of his estate.

In the end, the case was litigated in three different states and made its way to the United States Supreme Court twice.

According to Forbes, in an article titled "Court Ruling Likely Ends Anna Nicole Smith Estate's Fight For Marshall Family Millions," all that was left to litigate in the case was a $500,000 fine Smith was ordered to pay.

For what?

A judge had ruled her suit to be “frivolous” against Howard's estate.

Nevertheless, that matter was taken up before a Texas appellate court. It recently determined that the fine was improperly made.

Many think this will be the end of the fight.

However, it is possible that the language of the court's ruling left open the door for Smith's estate to continue its challenge of Marshall's estate.

Smith’s estate has not yet announced any plans one way or another.

Reference: Forbes (July 14, 2015) "Court Ruling Likely Ends Anna Nicole Smith Estate's Fight For Marshall Family Millions."

For more information on how to protect your family from possible litigation, please visit our website.