Dilbert’s Health Care Directive
While estate planning is no laughing matter, I wanted to share the following cartoon containing a discussion between an attorney and his client while reviewing a draft of Dilbert’s Health Care Directive:
As part of the estate planning process, I always discuss with clients the importance of completing a Health Care Power of Attorney and Advance Medical Directive. These legal documents are designed for the purpose of designating primary and back-up health care agents to step-in if and when you need medical attention, but are not able to communicate effectively with medical care providers.
Health Care Directives are Controlled by Two Legal Documents:
- “Health Care Power of Attorney” – designates the person selected to make health care decisions if you are unable.
- “Advance Medical Directive” or “Living Will” – documents what types of medical treatment you would or would not want at the end of life.
While estate planning discussions often center around Wills and Trusts, Health Care Directives are the “Living Documents” which comprise a comprehensive estate plan. In fact, choosing a Health Care Agent is one of the most vital decisions you can make to protect yourself in the event of a temporary or permanent illness, injury, or incapacity.
However, planning in advance of an illness, injury, or incapacity is the key. Advance planning can completely avoid the need to have a Guardian appointed by a local court for the purpose of making necessary health care and medical decisions if you suffer an illness, injury, or incapacity.
Unfortunately, our judicial system often forces court appointed Guardianships on people because they never completed their Health Care Directives on their own. At The Levin Law Firm, we believe that it is crucial for our clients to plan ahead so that they, and their loved ones, do not have to engage in a court appointed Guardianship proceeding. The alternatives to a Guardianship — “Health Care Powers of Attorney” and “Advance Medical Directives” — are a much wiser and cost efficient solution, compared to a Guardianship, which should be a last resort.
When properly designed, Health Care Directives avoid the time delays and expenses associated with a Guardianship proceeding. In essence, these legal documents allow a seamless and smooth transition in the decision making process, if medical decisions need to be made.
When it comes to health care, your decisions do matter. But you need to properly document your estate planning desires and health care wishes today so that your family can honor them in the future.
Please take the time to discuss the importance of having an up-to-date estate plan, which certainly includes Health Care Directives appointing a Health Care Agent to act on your behalf, if you are not in a position to speak for yourself.
Wills, Trusts, Health Care Directives, and other important estate planning legal documents should only be prepared by a licensed estate planning attorney. To arrange an “Estate Planning Check-up”, contact The Levin Law Firm to schedule a Complimentary Consultation at 610-977-2443.
What is estate planning truly about? It’s about assets, laws, taxes, and documents of course; but deep down, Estate Planning is About Relationships.
Since The Levin Law Firm focuses exclusively in the area of estate planning and probate matters, an important part of what we do is to create the best estate plan and asset protection vehicle for our clients. However, achieving this goal involves far more than simply designing and drafting legal documents—it involves listening to our clients, as well as reading between the lines of sensitive family dynamics and interactions. Estate planning also requires us to look into the future in order to catch potential problems which might arise, before they happen.
A recent article in the Wall Street Journal describes an interesting strategy which some creative financial advisors will suggest in order to help clients achieve their goals.
“For the family with the gridlocked siblings, [their financial advisor] arranged a session of personality-type charting with an outside expert. The tests showed one of the brothers-in-conflict to be a hard-driver who loved to make decisions on the fly. His brother was more analytical, and needed time to reach conclusions… Establishing that these conflicting traits are permanent characteristics has helped the brothers understand each other’s work habits and function better as a team.”
While The Levin Law Firm has not yet had to arrange personality-type charting sessions, this “running interference”, or acting as a trusteed advisor, mediator, and guide is exactly what we do, especially when we are engaged by executors during estate administrations. We believe that evaluating goals, assessing relationships, identifying priorities, and facilitating productive discussions are all part of being a responsive and competent estate planning attorney.
Estate planning and asset protection may sound like it’s only about things and wealth, but as members of your advisory team, we know that estate planning is always about family and relationships. Please consider our approach when recommending legal counsel to your clients whenever they need an attorney to develop or revise their estate and business disposition plans.
While it is important to engage a trust and estate planning attorney who is skilled in the tools and techniques required to protect your clients’ wealth, it is vital to work with estate counsel who is capable of listening to your concerns and implementing well crafted solutions designed to achieve the unique needs of your family.
Wills, Trusts, and other important estate planning legal documents should only be prepared by a licensed estate planning attorney. To arrange an “Estate Planning Check-up”, contact The Levin Law Firm to schedule a Complimentary Consultation at 610-977-2443.
Estate Planning for Unmarried Couples
Unmarried couples often face a significant problem under federal transfer tax laws, similar to the situation when a U.S. citizen spouse distributes property at death to his or her non-U.S. citizen spouse.
While married individuals can distribute an unlimited amount of assets to a U.S. citizen spouse, without any assets being subject to federal estate tax at the time of his or her death, assets bequeathed to a life partner or non-U.S. citizen spouse do not receive the benefits of the unlimited marital deduction for estate tax purposes. Therefore, special planning is required for clients who live with their life partner, but are not married.
If you work with clients whose estate plans provide for transfer of their personal assets or real estate to someone they live with, but are not legally married to, the liberal marital deduction rules for married couples do not apply. More specifically, if the total value of property distributing from an individual to his or her surviving life partner is greater than the estate tax exemption amount in effect in the year of death, then a significant federal estate tax liability may be due within nine (9) months after death of the first life partner.
In essence, many unmarried couples face much more difficult and challenging transfer tax issues, compared to married couples. For this reason, unmarried couples should consult with their financial advisor, along with an estate planning attorney who is very knowledgeable with both the practical aspects and tax rules impacting estate plans for unmarried couples.
Same-sex couples also encounter very similar estate planning concerns, even if they are legally married under the laws in the state where they reside and own property. While they may live in states that allow them to marry or have civil unions, in which they are treated the same as married couples for tax purposes, such laws only apply to state taxes. The federal government does not currently recognize same-sex marriages or civil unions for the purposes of federal taxes. Therefore, now that federal estate tax has returned, all unmarried couples need to take extra care in the design and implementation of their estate plan.
Wills, Trusts, and other important estate planning legal documents should only be prepared by a licensed estate planning attorney. To arrange an “Estate Planning Check-up” with your selected clients, contact Shari at The Levin Law Firm to schedule a Complimentary Consultation at 610-977-2443.
The Levin Law Firm provides a variety of legal and consulting services to businesses and their owners. One of our most sought after services is the guidance we provide to clients in their Business Succession Planning.
We help our clients to identify and articulate clear long-term goals for the disposition of their businesses. Thereafter, we develop and implement a comprehensive Business Succession Plan designed to help our clients execute the strategies for achieving their goals.
Without a properly designed and funded Business Succession Plan, many business owners, and surviving family members, end up with far less value upon the disposition of their businesses than they might otherwise have realized. In the worst case scenario, a business simply shuts down after the illness, incapacity or death of its owner. The result can be devastating financial losses for the owner’s family, along with serious damage to the careers and morale of surviving owners and employees, as customers who relied on the business have serious doubts about the continued financial vitality of the business. In short, without an up-to-date, properly drafted and funded Business Succession Plan, everyone stands to lose.
Considerations
The first step in developing an appropriate Business Succession Plan is to focus on the end result for all interested parties. There are many types of Business Succession Plans, and the proper plan is based upon multiple financial and tax related factors, coupled with the goals of our clients.
Following are some common themes in the area of Business Succession Planning:
1. The business owner wants to create a lasting legacy that continues after he or she is no longer involved with the business.
2. The owner wants to maximize the value of the business for sale, either to insiders or to outsiders.
3. The business owner wishes to create an ownership and/or employment opportunity for children or grandchildren.
4. The owner wishes to provide ongoing employment opportunities for hard working key employees of the business, now as well as after the owner is no longer involved.
5. The business owner wishes to “make a difference” in his or her community (in whatever way the owner defines “community” and “difference”).
Business Succession Planning is critical to all of the “stakeholders” in a business – that is, its owners, employees, vendors, customers and the communities in which the business operates. Proper deliberation and thoughtful implementation of such a plan allows everyone to benefit.
The topic of Business Succession Planning is a complex one, and this edition of Estate Planning Matters just scratches its broad surface. Planning considerations vary substantially and are based upon whether or not the exit goal is a sale to an outside third party, or a sale to “insiders” (key employees), or a gifting program to family members. Each of these avenues have different financial, tax, and estate planning consequences to the business owners, their families and their employees.
Next Steps
It has been said that, “Twenty minutes before the prom is no time to start taking dancing lessons.” This is especially true in the context of Business Succession Planning. A properly drafted exit plan should be designed, funded, and established while all business owners are alive, well, and have relatively equal negotiating abilities. There are many choices and implications that should be considered carefully – and sooner is better than later.
At The Levin Law Firm, we listen to the goals of our clients, then establish and implement effective Business Succession Plans.
In order to add value to your relationships with clients and help them to achieve their estate planning and business disposition goals, please call The Levin Law Firm to arrange a Complimentary Consultation at (610) 977-2443.
A Dying Banker’s Last Instructions
I thought that you would appreciate this remarkable story about Gordon Murray, a former bond salesman at Goldman Sachs, who passed away on Saturday, January 22 at the age of 60 from an aggressive form of brain cancer. While Mr. Murray spent his career on Wall Street struggling to beat the market with active money management, he achieved his greatest professional satisfaction by authoring a book to warn ordinary investors about the folly of over-aggressive money management.
Mr. Murray received his grim diagnosis in 2008, in the wake of the financial collapse, and could have bought an island or moved to Paris. Instead, after spending over 25 years on Wall Street, he chose to channel his remaining energy into writing a slim paperback called “The Investment Answer”. The book’s premise is that most people invest in a haphazard manner, buy stocks and mutual finds they know little about, sell at the wrong time, and as a result, investors take too many risks.
“The Investment Answer” offers a blueprint about “how to do it better, and worry less, by taking a simpler, more regimented approach to investing.” As detailed in Ron Lieber’s article in The New York Times, (see link below), the book asks ordinary investors to make just five (5) decisions. Mr. Murray’s tells about how he “stumbled on a better way of investing”, and how he became a true believer in a different way of investing.
Knowing he had only months to live, Mr. Murray terminated his aggressive medical treatments and dedicated himself to completing what became his final mission in life…..to get the word out about his newfound investment principles, which was a major shift from the aggressive trading philosophy he engaged in for decades at the highest levels of Wall Street.
“The Investment Answer” is published by Grand Central Publishing, who released 150,000 copies on January 25. Reviews suggest that: “It is plenty useful for anyone who isn’t already investing in a collection of index or similar funds and dutifully rebalancing every so often.”
- Ron Lieber’s article about Gordon Murray (New York Times)
- Obituary of Gordon Murray (New York Times)
In one of his final interviews, Mr. Murray said: “To have a purpose and a mission for me has been really special.” We should all be as fortunate as Mr. Murray. While he died much too young, and just days before his book was released in hard cover, he successfully achieved his purpose and mission in life.
Get help to navigate your way through the estate planning process, by calling Sherry or Maureen at 610-977-2443 to arrange a Complimentary Consultation at your office or at The Levin Law Firm.
