Posts By: Gene Osofsky

If you have adult children then you know that it’s more than just credit limits and investment accounts that have been affected by the slow economy; companies also are tightening their belts, and people of all ages are finding it harder to get (or keep) jobs. As a result, more and more adult children have been moving back in with their parents.

Of course every parent wants to do what’s best for their child, but Ruth Mantell of the Wall Street Journal writes in her article that in this case, being tough may be what’s best. This isn’t to say that you should refuse if your out-of-work child comes to your door asking for help, but that parents or grandparents need to do what’s necessary to protect themselves before they welcome their adult children back home. “With job losses continuing to mount, older Americans’ wallets are being stretched by their own children,” Mantell writes, but having your adult children back in your home can actually be a good experience for all—if you know what to expect and take the right steps first.

In her article Mantell offers five useful tips to help keep the peace and keep your finances secure, including suggestions such as making sure everyone knows who is boss (you as the homeowner), asking for household contributions (even if all your children can afford is a token financial contribution or a contribution of manual labor), and especially preserving your retirement plans at all costs.

Although the practice has fallen out of style, multi-generational households used to be the norm. It may not be the ideal situation today, but with the right communication, and with everybody on the same page, temporarily sharing the house with your adult children can be an acceptable—and maybe even rewarding—experience.

Posts By: Gene Osofsky

The recent unveiling of Michael Jackson’s will has brought up a lot of questions about wills, trusts, and estate planning: Why is his will so short? Does this mean it doesn’t work? Where is all his money going?

And then there’s the statement that makes any estate planning attorney shudder:

I guess trusts and estate plans are just for the rich.

Nothing could be further from the truth. Trusts and estate plans are for everybody. First of all, an estate plan describes the documents that dispose of your assets after you are gone. This may include nothing but a will and a healthcare directive, or it may include those documents plus a living trust, powers of attorney, modified beneficiary designations on insurance policies, retirement plans, annuities, and more. The size and intricacy of your estate plan can be as small or as large as you wish.  It all depends on you and your attorney.

Secondly, revocable living trusts are useful to everybody,  from the asset-poor young parents just starting out to the wealthy grandmother with enough property to give a house to every grandchild. This is because revocable living trusts are private and versatile documents that can be created to accommodate your unique situation, whatever it may be.

Those asset-poor young parents like the privacy of a trust–the fact that they can nominate a trustee to take charge of their finances for their minor children without everybody knowing who it is. They can also use a trust to set money aside for their children’s college fund, if that is important to them; or keep the family money in a singe trust for the benefit of all their children until each one has reached a certain age, when the inheritance can be divided up equally. And they can do this even if their only asset is the small house they just bought, or possibly a low-cost term insurance policy.

The wealthy grandmother likes a trust because she can leave an inheritance to her daughter, but keep it out of the hands of her daughter’s untrustworthy husband; or she can set aside a sum of money for each grandchild, to be used specifically for education, not fast cars. And the trust can encompass as many bank accounts, investments, or pieces of real estate as she likes.

Trusts and estate plans are essential and useful tools,  not just for the rich and famous, but for everybody. Contact our office to find out what kind of estate plan can benefit your family.

Posts By: Gene Osofsky

Anyone who has been around long enough knows that accidents happen, Murphy’s Law does exist, and things have a tendency to go wrong occasionally; computers crash, fires happen, pipes break and flood the first floor of your home. And sometimes things just get lost during the passage of time. This can even happen to something as important as your estate planning documents. This is why it’s important to know where and how to store your estate planning documents once you’ve executed them.

  1. Have copies. No matter where you decide to keep your signed originals, photocopies should be made and kept somewhere they can be found easily by your agents should something happen to you. A library bookshelf, or office closet is an unobtrusive but accessible place to store copies.
  2. Keep your original documents someplace safe from thievery and natural disasters. Originals can be kept in a fire-safe in your home if you have one, or in a safe deposit box at the venue of your choice. If you do decide to keep the documents in a safe deposit box, be sure to put the box in the name of the trust rather than your own name. This allows your trustee to access the box (and the documents inside) when you pass away.
  3. Make sure your agents and fiduciaries have the documents they will need to do their job should anything happen to you. Your will or trust should stay in your possession, along with your various other documents, but your healthcare agent will need a copy of your Advance Healthcare Directive and your HIPAA privacy authorization, and your nominated guardians should have the original document giving them permission to make health care decisions for your minor child if you are unavailable.

Every estate plan will vary slightly, so ask your attorney which documents to keep and which to send to your fiduciaries after you’ve signed. And if you can, get you documents in .pdf format on a disk or flash drive. The electronic copies are just that—copies—and won’t hold up in court; but it’s one more level of protection should disaster strike. At least they can then be quickly duplicated and re-signed by you if necessary.

Posts By: Gene Osofsky

The past week has been filled with media speculation about Michael Jackson and his will: Did he have one and what might be in it?  Well the waiting is finally over… kind of.  It turns out Michael Jackson did create a will, which was submitted to the California probate courts earlier this week.  The will (which can be viewed here) is five pages long, and because it pours “my entire estate” into the Michael Jackson Family Trust, the will itself reveals very little about the specifics Jackson’s estate or his instructions regarding the administration of it.

A will, although it can remain private during your lifetime, becomes a matter of public record once it is submitted to the probate courts after your death. But a trust is a private document, and in most cases remains private even after your death.

Jackson’s will does reveal a few details, though, namely who he chose as guardian for his children.  In paragraph 8 of his will, on page 4, just above his signature, Jackson states:

“If any of my children are minors at the time of my death, I nominate my mother, KATHERINE JACKSON as guardian of the persons and estates of such minor children. If KATHERINE JACKSON fails to survive me, or is unable or unwilling to act as guardian, I nominate DIANA ROSS as guardian of the persons and estates of such minor children.”

Whether Jackson’s wishes for guardianship will be followed remains to be seen.  As Jackson’s ex-wife and mother of his two oldest children, Deborah Rowe would normally automatically be awarded custody.  However, there are still too many unanswered questions about the status of Rowe’s parental rights—and her desire to assert those rights—to make any claims for certain.

The one thing that is certain, however, is that whatever odd and inexplicable things Jackson may have done during his life,  he seems to have done what he should to provide for his family’s financial needs and their privacy after his death.

Have you done the same?

Posts By: Gene Osofsky

Many people come into our offices thinking that the estate plan we help them create will be quick, easy, and — above all  — final for all time. They hope that once this item is crossed off the to-do list they can breathe a sigh of relief and never think about it again.  For some people this is exactly what happens, but others find that the creation of an estate plan serves as  jumping off point for other important planning strategies: Retirement planning, investment planning, Medi-Cal planning and long-term care planning are all important issues every family will have to eventually consider.

Most of these issues are at least somewhat familiar, but long-term care still presents a number of questions for many people: What exactly is it? Will I need it? Who will provide it? And how will I pay for it? In an effort to shine some light on the still murky issue, the AARP has published an article that helps answer these questions in a clear and concise manner. The article also addresses issues such as the difference between public and private services, and when you may need to utilize one or the other.

Answering the difficult questions, however, is only the first step. “Using a combination of support—family and friends, community services, private funds, and government assistance, if necessary—provides a balanced approach to getting the help you need in the setting of your choice.” Once again, having a plan is essential to ensure that you retain control over your own finances and care needs far into the future.

Posts By: Gene Osofsky

Michael Jackson’s death on Thursday shocked the world.  As fans and mourners line up to pay their respects (and snap up Jackson music and merchandise) the question now on the minds of many is: What will happen to Michael Jackson’s estate and to his children?

It is still too early to know what legal steps Jackson may have taken to handle his estate and protect his three young children.  But the truth is that even if Jackson does have all the requisite estate planning documents in place, execution of his wishes is not likely to be simple.  According to this article in the associated press Jackson was deep in debt at the time of his death—so much so that one source wonders, “[will there be] anything left after you pay off the debts?”

But the more immediate question for many people—especially parents—is what will happen to Jackson’s children?  Jackson had full custody of his three children (two by ex-wife Debbie Rowe and one by a surrogate mother, both of whom gave up their custodial rights), and although no guardianship documents have yet been revealed, according to news sources “it was Jackson’s intention for his children to pass to his mother, Katherine,” should anything ever happen to him. However, rumors that Rowe plans to battle for custody, and that his 79 year old mother may be in poor health, promise that this too is not likely to be a straightforward process.

It seems that the days of simple wills are a thing of the past. Even for your average Joe, blended families, shared assets, managed debt and the need to provide care arrangements for dependents,  make the execution of an estate plan more convoluted than ever.  Does this mean we shouldn’t even try?  Quite the contrary.  It means that it’s more important than ever to document your wishes for your children, family and estate, and to update these plans as your family circumstances change. 

Posts By: Gene Osofsky

The subjects of life and death are not generally considered legal topics, but rather spiritual ones; they push us to examine the very nature of humanity and the existence (or not) of a soul, touching on our most deeply held beliefs. As a document that deals directly with these issues in the most personal manner, the Advanced Health Care Directive (also known as a Medical Power of Attorney) is not one to be taken lightly by attorney or client.  Some clients come into the process strong in their beliefs and choices and knowing exactly which language to include; for others this may be the first time they have considered the subject in such a personal way, and may require more time and discussion.

The links provided below provide philosophical discussion and official views and language for most of the major religions practiced in our society.  Although much information is available, the official views of some faiths were more difficult to find than others. If your religious views are not included here please contact the head of your church or your own spiritual leader for guidance.

Posts By: Gene Osofsky

As an estate planning firm our job is to help people find the best way to leave an inheritance to their loved ones; but the inheritance you leave your children can end up making a huge statement about your core family values. When planning your estate it is important to ask not only “how?” to leave a legacy, but also “why?”

These are two questions that New York Times writer Stephen Amidon has spent a lot of time considering for his Op-Ed piece “My Children Made Me Do It”.  Amidon begins pondering the “how?” by bringing up recent newsworthy subjects, namely Bernie Madoff and Tom Daschle, reminding us that any legacy these two leave will be far more than mere money—and not necessarily beneficial. A parent will do just about anything for his children, writes Amidon, “…the one thing that is sure to get me thinking I should do something I really do not want to do — or perhaps even something I should not do — is the desire to endow my brood. All manner of behavior that would otherwise be considered contemptible seems to be justified in the name of inheritance.” But will it have been worth it?

The answer to that question depends in great part on how you answer the question, “why?”  Do you want to leave your children a Rockefeller fortune? Merely give them a little breathing room?  Or perhaps you agree with Amidon that “there is often something not quite right about these fortunate sons of the baby boom…— there is something missing here, the sense of accomplishment derived from patient effort.” Thus your goal may be less about finances and more about values.

For most people the goal is actually far simpler, at least in the beginning—they want to have enough themselves to not be a burden on their children.

Whatever your goals, with enough thought and discussion your estate plan can reflect and achieve them. The first step is to ask yourself the important questions.  “Why?” is a question for you alone, but “how?” is something our firm can help you with.

Posts By: Gene Osofsky

“We are pleased to inform you of the result of the Lottery Winners International programs… Your address attached to ticket number 2051146 won in the second category, you have therefore been approved to receive a sum of 1,000,000.00 Euro. Congratulations!!!”

You probably recognize the paragraph above from a common mail/e-mail scam letter.  This letter (or something like it) makes the rounds quite frequently in an attempt to part unsuspecting people from their money.  Most of us simply trash the letter and move on, but the elderly are more likely to fall victim to the scam and end up losing hundreds—sometimes thousands—of dollars before they realize they’ve been duped.  A recent article in the Wall Street Journal tells the story of one of these elderly victims and his family’s attempts to save him from the con artists:

“In less than a year, this Ivy League-educated professional sent at least $23,000 to slick con artists who came to know his personal interests, as well as his bank-account, credit-card and other personal information.”

The article states that the elderly are more likely to fall victim to these scams if they live alone, are grieving for a lost spouse, or have started to lose cognitive capacity. Luckily, there are ways to protect a loved one from scammers; protections from con artists and creditors can be built into trusts and estate plans, or in extreme situations a trusted family member can be given power of attorney over bank accounts and financial matters. 

If you are worried about a loved one and would like to take more immediate action, here are a few steps you can take:

  • Sign up phone numbers on the FTC’s Do Not Call Registry.
  • Gather scam mail in one envelope and place it in your mailbox with the note “Forward to Postal Inspector—suspected mail fraud.”
  • Place a short “I’m sorry, I’m too busy to talk right now. Thank you for your call” script by the phone to help respond to telemarketing calls.

If the fraudulent activity continues you can call the AARP Foundation Fraud Fighter Call Center at 1-800-646-2283. But the best thing you can do for your loved one is to be patient, supportive, and aware.

Posts By: Gene Osofsky

Summer is a time for iced tea and watermelon, long days in the pool, vacations at the shore… and for many people summer is also a time to volunteer for your favorite charity. With school out and free time at a maximum the time is ripe to get to know your community—and contribute with a donation of time.

Whether by volunteering your time in a soup kitchen, helping out at grandma’s nursing home, teaching handicapped kids to ride horses, or donating a percentage of your income, a majority of the population chooses to give back to their community in some way.  There are organizations and websites (such as www.volunteermatch.org) dedicated solely to helping us in our charitable endeavors.  And the good news is that a Living Trust or Will can help you continue giving even after your death.

With a Living Trust or Will, you can choose to give any amount of your estate to your favorite charity.  Some people leave a specific dollar amount; others leave a percentage of their entire estate.  And you can name your one favorite charity or divide the amount among many charities.  Your estate planning documents give you endless possibilities to take care of the important people—and causes—in your life.