Posts By: Gene Osofsky

E-mail, blog, iTunes, social networking, online photo albums… more and more of our lives and our businesses are moving online, but what happens to that online life when you pass away? Will your accounts languish, becoming an easy mark for hackers?  Eventually be deleted? Perhaps they’ll be passed to your spouse after petitioning the court for access, but will your spouse know what to do with all of them?

The internet is no longer merely where you go for personal e-mail and the occasional online shopping trip—many businesses now exist almost exclusively online, as do reputations and friendships. What tech-savvy people need is a way to dispose of all of their online assets when they pass away, an online will, if you will.  Now there is a company that offers this kind of service: Legacy Locker.

Legacy Locker describes itself as “a safe, secure repository for your digital property that lets you grant access to online assets for friends and loved ones in the event of death or disability.” It allows you to upload login information for all of your various online assets and assign those assets to different friends, loved ones, or trusted agents. Upon your death, Legacy Locker will send the ownership information, along with your own final letter or instructions, to the people you have “nominated”. This means you can assign assets to the appropriate people: your personal e-mail to your spouse, your iTunes account to your daughter, your business e-mail and blog to your business partner.

Of course there are drawbacks; the Legacy Locker needs to live as long as you do to be effective, and you’ll need assurances that it is safe and “hack-free”, but this is obviously an idea whose time has come, because our online lives are becoming as rich as our physical lives, and will soon (if not already) need just as much protection.

Posts By: Gene Osofsky

If you or a loved one has spent any time in hospitals recently then you know that they operate under strict rules regarding privacy; rules that, according to this post by Tara Parker-Pope, can seem difficult or unfair. These rules prevent hospital staff from sharing information about patients (even with extended family members), and in some cases even prevent the staff from allowing visitors.  All of this can be frustrating to say the least when you’re crazy with worry about your loved one.

There is a way around the strict privacy laws, a way that is fool-proof and perfectly legal—and it’s something our firm can help you with.  A comprehensive Health Care Directive and a signed HIPAA Authorization are your tickets to a cooperative relationship with the hospital staff. But these documents, these “tickets”, require forethought and planning before you end up in the hospital.

An estate plan created with our office includes not only financial documents, but also any documents you’ll need to ensure that your wishes for medical care are followed. Don’t wait until the last minute.  You never know what fate may have in store, and your procrastination can result in your loved one being left frightened and in the dark.

Posts By: Gene Osofsky

  • Every 70 seconds someone is diagnosed with Alzheimer’s
  • 5.3 million people are currently suffering from Alzheimer’s
  • Alzheimer’s is now the sixth leading cause of death
  • There are 9.9 million unpaid caregivers in America
  • One in eight people over the age of 65 suffers from Alzheimer’s

            (from the Alzheimer’s Association’s 2009 Alzheimer’s Disease Facts and Figures)

Alzheimer’s is a disease that touches each one of us in one way or another; whether we care for a loved one with the disease, have experienced the pain of watching a parent or grandparent slowly lose themselves to it, or live with the fear of being diagnosed with it ourselves.  With one in eight people aged 65 or older already suffering from Alzheimer’s and another person diagnosed every 70 seconds, we can no longer to afford to bury our heads in the sand and hope that Alzheimer’s will pass over our family. It’s time to bring the disease into the light.

Bringing Alzheimer’s into the light is exactly what Maria Shriver is doing with her moving article in the Huffington Post and with her children’s book, What’s Happening to Grandpa?  Shriver isn’t the only one who feels that Alzheimer’s deserves more attention; HBO aired their Alzheimer’s Project this past weekend, featuring, among other things, a four part documentary series.

Although the facts about this disease are frightening—especially as the Baby-Boomers near the age of 65—a common theme among experts and activists is optimism and hope.  The more the public is aware of Alzheimer’s and its implications for their own futures and families, the more can be done not only for victims of Alzheimer’s themselves and in the search for treatment, but also in support of caregivers and loved ones.

Posts By: Gene Osofsky

A trust is one of the most flexible and most powerful estate planning tools, and not just for avoiding unnecessary estate taxes.  Many of the clients who come through our office choose to create trusts for other reasons as well; namely to protect their heirs from predators, creditors, and sometimes even from themselves.  Sometimes a client goes even further than that, and wishes to place restrictions and attach conditions on an inheritance. In general, these conditions are enforceable—as in the case of a beneficiary being required to have graduated from college before having access to his inheritance—but is it possible to take these conditions too far?  Should a grantor be able to restrict who his beneficiaries can marry?

This is the issue that is being argued right now In re Estate of Feinberg, 383 Ill. App. 3d 992, in what is being referred to as “The Jewish Clause” in this article on the Trusts and Estates website. In this case, grantor Max Feinberg:

“created a trust in which he declared that any descendant of his — that is, any descendant other than his children — ‘who marries outside the Jewish faith (unless the spouse of such descendant has converted or converts within one year of the marriage to the Jewish faith) and his or her descendants shall be deemed to be deceased for all purposes of this instrument as of the date of such marriage.’”

At first the Illinois court ruled that such a clause was invalid as going against public policy, but one judge’s strong dissenting opinion has resulted in the Illinois Supreme Court agreeing to hear the case.

Although the case is being heard in Illinois, the decision could eventually have an impact on trusts created in other states, and so we put this question to our readers: How far should a grantor be able to go in placing conditions on an inheritance?

Posts By: Gene Osofsky

The government has plans for your children’s inheritance.

The particulars of the estate tax have been in flux, and have been the subject of much debate over the past few years, with the only constant being that there always is an estate tax. And now the Obama administration is proposing more changes to the estate tax; changes that would result in $60 billion in new tax increases over the next 10 years on wealthy estates, to be exact.

According to the administration itself these are not actually tax increases, but merely the elimination of “tax loopholes”. The elimination of these loopholes “would raise an estimated $24 billion over 10 years by tightening estate-tax rules, giving taxpayers less flexibility to minimize their liability on inherited goods by claiming a different value on the same item for different transactions.”

Wealthy estates are not the only parties to be effected by the proposed changes; business owners will find themselves hit as well by “a second element…which would require businesses and others who make payments to corporations to report such payments to the Internal Revenue Service.”

Forewarned is forearmed.  Whether you have a plan in place already or are only now motivated to create one, our firm can help you weather these proposed changes, and help you continue to protect your estate and your children’s inheritance. 

Posts By: Gene Osofsky

The number one reason that people die without protecting their assets or their heirs is not that they lack the money to create an estate plan, and it’s not that they don’t know that they need one, or how to create one—It’s procrastination.  Most people who die without an estate plan in place do so because they dawdled.

For most of us it’s all too easy to put off thoughts of sickness or death, and all planning for the unlikely—but inevitable—event gets pushed to the wayside.  Writer M. P. Dunleavey reminds us in the article Last Things Can’t Wait Till Last that procrastination is not a planning tool and that in actuality, once you buckle down and start, protecting your heirs is not such a difficult process after all; especially if you have the right person helping you.

At our office we agree with Dunleavey’s article to the extent that we want to ensure that you have everything you need to best protect your assets and your heirs without making it unnecessarily complicated.  Life insurance, guardianship, planning for Long Term Care, wills and trusts: taken piece by piece they can overwhelm even the staunchest of individuals; but our office can help you sort through each of these issues together, and be confident in your future security and the security of your heirs.

In a world with complicated tax laws, and in which we often have very complicated lives, it’s nice to know that your estate planner is working to make your life simpler.

Posts By: Gene Osofsky

Nothing, it seems, has the potential to cause a fight over inheritance quite like a second marriage. The Wall Street Journal’s SmartMoney magazine, in an article entitled Before Your Parents Say ‘I Do’ Again,  says that poor estate planning (or even worse, no estate planning) can cause terrible damage to family relationships:

“As Americans live longer, they’re more likely to move into second marriages, and legal experts and financial planners say the resulting friction with the kids is steadily mounting. In more cases grown children are going to court against their parents even while they’re still alive, only to run up against a legal framework that leaves them with surprisingly few rights compared with their parents’ new spouses.”

How can you avoid family friction — not to mention legal battles — if you choose to remarry? According to the article, there are a number of ways: open communication, careful estate planning, the use of prenuptial agreements, or even skipping the marriage ceremony altogether.

Not all methods are right for all families, but everybody can agree that it pays to think ahead, which is why the advice of a qualified estate planning attorney before the wedding ceremony is crucial.  After all, according to one attorney quoted in the article, “People get over the loss of a loved one sooner than the loss of an inheritance”.

Posts By: Gene Osofsky

All the news lately seems to be about swine flu.  Every day brings at least 3 new stories about it, and it’s all people on the street can talk about.  But how worried should we really be?  We know that many of our readers are caregivers for the elderly, and are concerned about swine flu for more than just themselves, so we did a little research on the subject and are pleased to report that,  so far and in spite of its communicability, swine flu is nothing to panic about.

According to webmd.com the worst thing about swine flu is how it is currently being blown out of perspective.  The website brings things back to earth by giving 7 Facts to Consider if You’re Fearful About Swine Flu.  According to this article, swine flu is still much less dangerous than regular influenza, which even in the U.S. kills about 36,000 people in an average season.  “Swine flu hasn’t come anywhere close to that.”  This article also reminds us that most people who have been diagnosed with swine flu have recovered without being hospitalized.  If you still have concerns after reading this article, webmd.com has an entire page of its website devoted to providing information and answering your questions about swine flu.

If you are a caregiver your concerns about swine flu are greater than just for yourself.  How can you keep your patients safe?  The New Old Age blog has posted a list of 7 Things Caregivers Should Know About Swine Flu, with is filled with good suggestions, including the logical ones such as avoiding large group situations, and phoning the doctor instead of going into the office (or worse, the emergency room) if you suspect you have symptoms.  But the most important and comforting information from this post is that “So far, the virus does not seem to have disproportionately affected the elderly” and “The measures normally used to avoid the flu should be effective.” These measures include washing your hands often, and keeping frequently touched household surfaces such as handles, doorknobs, faucets, and telephones clean and sanitized.

We hope all of our readers stay safe and healthy this flu season.

Posts By: Gene Osofsky

So many clients come into our office, finish signing their estate plan, start to lean back with a sigh of relief only to sit straight up again and say “My parents really need to do this! I wish they would listen to me and come in to see you.” How can adult children persuade stubborn parents of the necessity of an estate plan?

First you need to determine if your parents actually need to be persuaded, or if they’re merely slow to follow through. Offer to bring them with you to your next appointment (if you and your attorney don’t mind), or offer to make an appointment for them with their own attorney. Some parents in very open families even like to have adult children with them at planning meetings

There are times, however, when actual persuasion is required. You may be a grown adult with responsibilities, a successful job, and family of your own, but to your parents you will always be their little girl or boy. This doesn’t mean that your parents don’t value your suggestion, but it may mean they don’t see any urgency to taking action. In these situations what your parents may need to light a fire under them is a professional outside opinion. Suggest that your parents go see their financial specialist, even offer to set up the appointment for them. Much as parents love their children, the opinions of professionals sometimes carry more weight than that of their offspring.

There are the rare occasions, however, when parents absolutely will not be persuaded. Perhaps they don’t trust attorneys, or are adamant that probate is good enough for them, or perhaps (for their own reasons) they want to maintain privacy or even secrecy. In these situations the best course of action may be to let it go. Your parents may have a change of heart when they see how happy you are with your own estate plan.

If this last is the situation you find yourself in, your best course of action may be to ask your attorney what you can do to best protect yourself from the fallout of a lengthy probate process when your parents pass away, or to discuss with you how your parents will pay for long term care.  Will the burden fall upon you?  Will your parents be able to qualify for a Medi-Cal or Veterans Benefits subsidy?  Long Term Care expenses can, over time, be devastating to your parents’ savings and stressful for caregiver children, unless the family has a plan in place.

Posts By: Gene Osofsky

Hotel magnate and “Queen of Mean” Leona Helmsley has always been a figure of controversy, both in life and after her death in 2007.  Reporters and bloggers went wild when she left $12 million dollars to her dog “Trouble” in a trust fund after her death.  But that $12 million (later reduced to $2 million by the courts) wasn’t even the bulk of her estate. Most of the Helmsley estate (somewhere in the area of $4-$5 billion) was left to the Leona M. and Harry B. Helmsley Charitable Trust.  It is this charitable trust that is still carrying on the Helmsley controversy today.

Although the management of the Helmsley Charitable Trust was left up to trustees, with few specific legally binding instructions regarding beneficiaries, Helmsley did leave a “mission statement” (also called a “letter of intent” or a “memorandum of intent” in the Estate Planning world) stating that it was her intention that the bulk of the trust “provide for the care of dogs”. What trustees have actually done is given $1 million (less than 1% of the estate, according to the president of the Humane Society) to dog-related charities, with the bulk of the estate instead going to various medical centers—of the human kind.

The question from an estate planning perspective is not necessarily whether Ms. Helmley should have left her estate to the dogs, but whether or not her wishes are being followed. And the lesson to be taken from the controversy over her estate is this: If you have specific wishes as to the distribution of your estate, you must leave specific instructions in an updated and legally binding document created by a knowledgeable professional.

The best estate plan is the one that can be carried out without controversy.